Udaan announces $160-million structured financing round

Business-to-business e-commerce platform Udaan on Tuesday announced a financing round of about $160 million, comprising fresh equity, new debt and a debt-to-equity conversion.

Existing shareholders, along with a new investor, will infuse fresh capital into the company, while certain investors will convert a portion of their outstanding bonds into equity, the IPO-bound firm said in a statement.

The remaining outstanding balance of the convertible bonds will be extended on revised terms and conditions, it added.

The company also said that an investment management firm has committed approximately $45 million through its private credit platform as part of the transaction.

Financial crunch

The proposed fundraising comes amid ongoing insolvency proceedings involving Udaan's offshore parent, Trustroot Internet Pvt. Ltd in Singapore. The Economic Times reported on 3 July that a group of global creditors moved the Singapore High Court against Trustroot after it defaulted on $170 million of compulsorily convertible notes that matured on 30 June.

The creditors include Tor Investment Management, Samena Capital, Arena Investors, Catalyst Funds, Evolution and Nomura, among others.

The proposed transaction is subject to customary closing conditions, execution of definitive agreements and regulatory approvals, where applicable.

Udaan last raised $114 million in a Series G funding round led by existing investors M&G Investments and Lightspeed Venture Partners. The round reportedly valued the company at around $1.3 billion, down nearly 59% from its peak valuation of $3.2 billion.

Mint reported in December 2025 that Udaan had initiated a process to sell a minority stake in its non-banking financial company (NBFC) as the B2B e-commerce platform looked to monetise assets while navigating a broader restructuring exercise, citing three people familiar with the matter.

Show of confidence

"Over the last several quarters, we have consistently improved our operating performance by delivering healthy growth while significantly strengthening profitability and cash efficiency, Vaibhav Gupta, co-founder and chief executive of Udaan, said in the statement.

“The continued support from our existing investors, alongside the participation of new capital partners, reflects strong conviction in our business fundamentals and long-term opportunity,” Gupta added.

For FY25, Udaan reported consolidated revenue of ₹4,561.4 crore, down from ₹5,706.6 crore in FY24. Its consolidated loss narrowed by nearly 37% to ₹1,055.4 crore from ₹1,674.1 crore a year ago.

It also said that Bengaluru, its largest operating city, has achieved Ebitda profitability, demonstrating the effectiveness of its disciplined execution.