Indian business-to-business (B2B) marketplace Udaan on Monday said it has raised Rs 300 crore ($35.7 million) in debt financing from investors including Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital.
The latest round of funding follows Udaan’s $340-million Series E round in December, which was led by M&G and consisted of a mix of equity and convertible notes. M&G is Udaan’s second-largest shareholder followed by Lightspeed Venture Partners, which holds a 40% stake.
It also counts Microsoft, Nomura, Samena Capital, DST Global, GGV Capital, Altimeter Capital, and Tencent among its investors.
The startup was valued at $3.2 billion following a funding round in January 2021. However, in January this year, Udaan’s valuation fell by nearly half to around $1.8 billion in a down round.
With the new funds, Udaan will scale its geographical footprint through its ‘micro-market strategy’. It will also enhance ‘go-to-market’ capabilities, streamline supply chain processes, and invest in new micro-fulfilment centres (MFCs), it said in a statement.
The company claims to have achieved a 30% reduction in absolute EBITDA burn so far this year and is on track to touch profitability.
Established in 2016 by former Flipkart employees Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, Udaan enables traders, wholesalers, retailers, and manufacturers to come together on a platform to find clients, suppliers, and products through UdaanExpress.