Following this announcement, the startup is expected to invest the funding round in supply chain capabilities, as well as expand its possibilities for vendor partnerships and collaboration in the market. The strategy is planned to take place ahead of the stock market debut, which is set to happen in 2025.
The Series E funding round was done with a combination of a new equity round and a conversion of debt. At the same time, it was also led by M&G Pic, with the participation of already existing investors, such as Lightspeed Venture Partners and the DST Global company. According to Udaan’s officials, this investment is set to accelerate the development of its business plan, as it will enable its process of growth and profitability to take place in a secure and efficient manner.
Udaan represents a company that aims to optimise the manner in which smaller merchants and businesses source their goods and services, while also running an online marketplace and logistics networks that improve mum-and-pop stores to get faster deliveries and cut the need for a traditional middleman in the process. The startup also targets an initial public offering in 2025. This company is yet to decide whether this plan will take place in the region of India, or overseas.
Earlier in 2022, Udaan announced the raise of USD 250 million, aiming to accelerate its scaling processes and efforts, as well as to prepare for the process of exploring the public markets in the region. The funding contained an investment made of USD 200 million via a convertible note and an additional USD 50 million as debt. At the same time, according to the press release published at the moment, the funding also saw participation from already existing investors and two new ones, which reached the valuation of the firm at USD 3 billion.
Udaan focused on the process of solving the inventory problems and challenges that businesses and firms faced by connecting small retailers with wholesalers and traders in the market. The startup also facilitated merchants' and traders' secure and efficient working capital, as small and medium-sized businesses (SMBs) often rely on the money they secure from selling their inventory for purchasing their next batch of solutions.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now