B2B ecommerce platform Udaan has announced a structured financing transaction worth approximately $160 million, comprising fresh equity, new debt and debt to equity conversion, as the company looks to strengthen its balance sheet and simplify its capital structure ahead of its long term public market plans. According to the company, the transaction will see existing shareholders along with a new investor infuse fresh equity into the Bengaluru based company. In addition, certain existing convertible bondholders will convert a portion of their outstanding bonds into equity, while the remaining bonds will be extended under revised terms and conditions. As part of the transaction, one of the world's leading investment management firms has committed approximately $45 million through its private credit platform, providing fresh debt financing. The company did not disclose the identity of the investor. According to Udaan, the financing will materially strengthen its balance sheet, provide greater financial flexibility and simplify its capital structure as it advances towards public market readiness. The company said that over the 10 quarters from Q4 CY23 to Q1 CY26, its revenue grew at a CAGR of around 25%, contribution margin improved by nearly 500 basis points and EBITDA burn declined by around 70%. It added that its largest operating cities and clusters have achieved EBITDA profitability, while its private label portfolio now contributes 15% to 25% of staples sales across operating cities, helping improve margins and operating leverage. "This financing round marks another milestone in Udaan's journey towards building a sustainable, profitable and institutionally resilient business," cofounder and CEO Vaibhav Gupta said. He added that the stronger balance sheet and simplified capital structure will enable the company to continue investing in customer value while progressing towards its long term public market ambitions. The latest transaction comes a little over a year after Udaan closed its$114 millionSeries G funding round in June 2025, led by M&G Investments and Lightspeed, with participation from several existing and new investors. The company has since accelerated preparations for its public listing. In March this year, Udaan reportedly began itsreverse flipfrom Singapore to India. Earlier, in July 2025, Udaanacquiredretail tech startup ShopKirana in an all stock transaction, marking one of the largest consolidation moves in India's B2B ecommerce space. The acquisition expanded Udaan's footprint in the kirana segment and strengthened its presence across key markets. Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever. You may find a list of our investorshere.
