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New Delhi: B2B e-commerce firm Udaan has raised USD 340 million in Series E led by M&G Plc, including participation from existing equity investors Lightspeed Venture Partners and DST Global. The deal is subject to regulatory approvals.
The funding includes a combination of fresh equity as well as the conversion of existing debt (convertible notes) into equity.
Udaan plans to use the funds to strengthen customer experience, market penetration, strategic vendor partnerships, and to reinforce long-term capabilities of supply-chain and credit, the release read.
“Series E round strengthens our balance sheet and fully funds our business plan. It enables our continued journey of growth and profitability, positioning us well to be public-market ready in the next 12-18 months,” commented Vaibhav Gupta, co-founder and CEO, Udaan.
Udaan is aiming to become profitable in the next 12-18 months and has been focusing on trimming costs. In September this year, Udaan restructured its team and business verticals by separating its technology function into ‘Product’ and ‘Engineering’ verticals. It also reorganised its essentials and discretionary business by merging the two.
Two key executives – Gaurav Bhalotia, CTO and Vivek Gupta, head – essential categories transitioned from the company.
As per the financial statement filed by Udaan’s parent entity Trustroot Internet in Singapore, its gross revenues decreased 43 per cent from Rs 9,900 crore in FY22 to Rs 5,629 crore in FY23. At the same time, Udaan’s losses decreased 33 per cent to Rs 2,075 crore.