Amid a funding crunch for startups, Udaan has raised $120 million in convertible notes and loans from shareholders and bondholders, according to India’s largest business-to-business e-commerce firm.
According to an internal corporate document, financing for Udaan, which intends an IPO in the next 12 to 18 months, has exceeded $350 million in the last four quarters, making it one of the largest structured instruments fundraises in the nation
IPO of Udaan Company Postponed
On October 12, ET was the first to announce that Udaan was in the advanced stages of negotiations to close a new round of debt financing using convertible notes for $150–200 million. The company plans to go public in the next 12 to 18 months, indicating a postponement of its initial public offering (IPO).
Vaibhav Gupta, the CEO of Udaan, had previously disclosed that the company intended to go public in May 2023. In a report, it was expected that the IPO would be delayed for at least two more quarters. Since its headquarters are in Singapore, the startup, supported by Lightspeed Venture Partners, intended to list overseas.
Startup Funding Sources
This outlier firm, Udaan B2B is an e-commerce platform and has received $120 million in convertible notes and debt when the startup ecosystem is experiencing a funding constraint this year.
As of the end of the fourth quarter, Udaan has funded more than $350 million through loans and convertible notes. Small businesses, farmers, and brands may market and sell their goods nationwide at a reasonable cost with 100% payment security and total transparency, thanks to Udaan.
The business applauds the most recent fundraising, especially given how difficult it is right now to attract investors for the startup sector
Udaan’s Business Challenges
In a letter to the company’s employees, Udaan’s chief financial officer Aditya Pande stated that “Despite the funding-related difficulties faced by the broader startup ecosystem, this fundraising represents the trust of investors in our business model and their validation of the path to unit economics, driven by remarkable progress in the evolution of our business model and cost efficiency, that we launched last year.
A recent PwC India survey found that Udaan startup funding in the July-September quarter totaled $2.7 billion across 205 deals, a two-year low.