B2B ecommerce platform Udaan Monday said it has raised around Rs 300 crore in debt financing from venture debt investors such as Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital.
The funds, raised in the ongoing financial year, will be used to strengthen balance sheet while offering flexibility to invest and continue leading the eB2B market in the changing market dynamics, said Udaan.
The company said it plans to scale its geographical footprint through a micro-market strategy with the funds. Additionally, it will use the funds to optimise operations by enhancing ‘Go-to-Market’ (GTM) capabilities, streamline supply chain processes, invest in opening new micro-fulfilment centres (MFCs) and improve service delivery experience for customers.
These market-driven initiatives will significantly improve operational efficiency across all verticals while driving productivity and reducing costs, said Udaan.
"This funding will further strengthen our financial position, providing the flexibility to double down on key strategic initiatives such as expanding our cluster model to drive operational excellence enabling us to continue on our path to profitability while solidifying our market position," said Kiran Thadimarri, senior vice president, group finance, Udaan.
The fresh round of debt funding follows Udaan's $340 million Series E financing led by M&G Plc, with participation from existing equity investors Lightspeed Venture Partners and DST Global.
In 2024 so far, Udaan has achieved consistent growth highlighting the strength of its strategic approach and implementation of the new design playbook in the marketplace, it said.
Bengaluru-headquartered Udaan claims that the company is on track to achieving profitability, with a 60% revenue growth in the calendar year 2024 and over a 50% increase in daily transacting buyers. Additionally, it claimed that its gross margins have improved by 200 basis points and contribution margins by 300 basis points year-to-date, alongside a 20% increase in buyer wallet share and monthly repeat ratio of over 90%. Also, it claimed to have achieved a 30% reduction in absolute EBITDA burn.
