Udaan raises US$ 120 million amid funding winter; plans IPO in 12-18 months

In the midst of a funding crunch for startups, Udaan has raised US$ 120 million in convertible notes and debt from shareholders and bondholders.

According to an internal company document, financing for Udaan, which intends to go public within the next 12 to 18 months, has exceeded US$ 350 million over the past four quarters, making it one of the largest structured instrument fundraises in the country.

Bengaluru-based Microsoft, Lightspeed Venture Partners, M&G Prudential, Kaiser Permanente, Nomura, TOR, Arena Investors, Samena Capital, and Ishana Capital are a few of Udaan's current investors.

When Udaan received its final US$ 280 million in funding from both previous and new investors in January 2021, it was valued at US$ 3.1 billion.

Udaan claimed that over the past year, it had significantly increased unit economics by over 1000 bps (basis points), with equally significant increases in gross margins and operating costs.

According to US-based research firm Bernstein, business-to-business e-commerce players like Udaan are expected to upend India's US$ 1 trillion consumer retail industry.

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