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Udaan lands $160M to steady finances before IPO
India’s Udaan has raised $160 million in equity, debt, and bond conversions as it works to repair its balance sheet ahead of a planned IPO.
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Indian B2B ecommerce platform Udaan has secured $160 million in a new financing round as it moves to repair its balance sheet ahead of a planned IPO within the next two years, according to Bloomberg.
The deal combines fresh equity from a new investor, additional debt, and the conversion of existing convertible bonds into equity. Lightspeed Venture Partners and M&G Investments are participating. The timing is critical: Udaan had defaulted on $170 million in convertible notes that matured on June 30, according to earlier reporting by Business Standard.
Under the new structure, the new investor is injecting equity while existing bondholders are converting their holdings into shares. Bondholders that did not convert have had their remaining notes extended under revised terms.
Founded in 2016 by three former Flipkart engineers, Udaan runs a marketplace linking manufacturers and wholesalers with more than three million small retailers across India. It operates in categories including electronics, groceries, pharmaceuticals, and general merchandise, and accounts for roughly 70 percent of India’s B2B ecommerce market by volume, according to industry estimates cited by Caproasia.
Vaibhav Gupta, one of the three co-founders, became CEO in 2021 after co-founder Amod Malviya stepped back. The third co-founder, Sujeet Kumar, remains on the board.
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Udaan has been raising capital repeatedly to support its finances. It closed a $75 million round in February 2025, followed by a $114 million Series G in June 2025 that valued the company at under $2 billion, according to VarIndia and Outlook Business. That is well below the $3 billion peak Udaan reached in an earlier funding cycle, reflecting the broader reset in Indian startup valuations after 2022.
Udaan’s listing plans place it among a growing group of Indian tech companies preparing to go public. Razorpay filed confidential IPO papers with India’s market regulator last month, while Sarvam raised $234 million at unicorn status in June. For Udaan, though, the central challenge is simpler: showing that reworked debt and fresh capital can translate its scale into the stronger margins public investors will expect.
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via TNW
