Udaan Elevates Market Presence with $114M Funding Boost

eB2B platform udaan has successfully raised $114 million in fresh equity capital during a funding round spearheaded by M&G Investments and Lightspeed. The company announced that these funds will be pivotal in expanding its reach across key categories and enhancing its customer base, specifically targeting the Fast-Moving Consumer Goods (FMCG) and Hotel, Restaurant, and Catering (HoReCa) sectors.

In addition to scaling its market presence, udaan plans to accelerate its private label brands initiatives within the staples category. This capital injection not only strengthens udaan's balance sheet but also enriches its financial flexibility as the company inches closer to a public market debut.

According to the company's statement, udaan aims to maintain a trajectory of 'consistent growth with profitability at scale' through a regional cluster-led operating model. Cost reduction measures have already led to a 40% reduction in EBITDA burn, with the goal of achieving full EBITDA profitability within the next 18 months. Co-founder and CEO Vaibhav Gupta emphasized that the business transformation has positioned cost management as a key competitive advantage.

(With inputs from agencies.)