Funding · Commerce & Consumer Brands

Udaan raises $160M in structured financing

By Startup Enthusiast · 14 July 2026

What they do

Udaan is a B2B ecommerce platform serving kiranas, chemists, hotels and offices across India

It raised about $160M through fresh equity, new debt and debt-to-equity conversion from existing and new investors

The funds will strengthen its balance sheet and simplify its capital structure ahead of a planned IPO

Udaan announced a ~$160M structured financing round combining fresh equity, new debt, and debt-to-equity conversion.
A global investment management firm provided ~$45M in fresh debt through its private credit platform.
Existing shareholders and a new investor provided fresh equity; the company did not disclose their identities.
Media reports named BlackRock as the private-credit investor, and Lightspeed Venture Partners and M&G Investments as equity participants.
Some convertible bondholders converted part of their holdings into equity, and remaining bonds were extended under revised terms.
The company also reached a restructuring agreement with shareholders and offshore creditors covering claims of $178M including interest.
Udaan began its reverse flip from Singapore to India in March 2026 and expects an IPO in 9 to 18 months.

Udaan faced insolvency proceedings in the Singapore High Court after defaulting on $170M convertible notes due June 2026.
The restructuring agreement and this financing aim to resolve creditor claims and simplify the capital structure.
The company has improved its financial metrics: revenue CAGR of ~25% over 10 quarters, contribution margin up ~500 basis points, and EBITDA burn down ~70%.
Its largest operating cities and clusters have achieved EBITDA profitability.

Udaan is a B2B ecommerce platform connecting small businesses like kiranas, chemists, hotels, and offices with suppliers.
It offers products across Food & FMCG (staples, snacks, beverages) and Healthcare & Pharma (medicines, wellness products).
The platform lists 1,600+ SKUs and provides wholesale pricing, private label brands, returns, delivery, and business credit.
Its private label portfolio contributes 15% to 25% of staples sales across operating cities.
Udaan is trusted by millions of small businesses across Bharat (small towns and rural India).
It acquired ShopKirana in July 2025 in an all-stock transaction.

Udaan plans to use the funds to strengthen its balance sheet and simplify its capital structure.
The company is preparing for a public listing, expected 9 to 18 months away as of March 2026.

BlackRock (investor) — Global investment management firm providing private credit.
Lightspeed Venture Partners (investor) — Existing venture capital investor.
M&G Investments (investor) — Existing investment firm.

Product: B2B e-commerce platform
Customers: Small retailers, kiranas, and business buyers
How it makes money: Connects businesses to suppliers through a B2B marketplace and earns through transaction-based services and platform-led commerce.
What sets it apart: Broad distribution reach across many cities with strengthening supply chain and credit infrastructure.