Legal · Commerce & Consumer Brands

Udaan faces insolvency proceedings over bond default

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Overseas creditors filed insolvency proceedings in Singapore High Court over a $170 Mn bond default

The company is raising up to $200 Mn in equity and negotiating a $40 Mn credit facility from BlackRock

Valuation has dropped below $1 Bn, a 69% collapse from its 2021 peak

Overseas creditors have initiated insolvency proceedings in the Singapore High Court against Udaan's offshore parent Trustroot Internet over a bond default.
The default involves $170 Mn in compulsorily convertible notes due June 30, with total dues up to $200 Mn including redemption premium.
Creditors include Tor Investment Management, Samena Capital, Arena Investors, Catalyst Funds, Evolution, Nomura, and Standard Chartered Bank.
Lenders of Udaan's India unit, including JP Morgan, HSBC, DBS, and Axis Bank, withdrew working capital lines ahead of court proceedings.
Sources close to the company said all working capital lines with banks were paid and closed months back.
Udaan and its fintech arm udaanCapital continue to operate as usual, serving customers across trade commerce and supply chain financing.
The convertible notes were set to turn into equity if Udaan listed by now, but Trustroot has yet to redomicile in India.
Udaan received approval to consolidate entities under a single business.

The insolvency proceedings follow a bond default that triggered creditor action.
Udaan's valuation has dropped below $1 Bn, a 69% collapse from its peak of $3.2 Bn in 2021.
FY25 revenue declined 20% year-on-year to ₹4,561 Cr, while operational loss narrowed 37% to ₹1,055 Cr.
The company is working with Goldman Sachs to raise up to $200 Mn in equity and negotiating a $40 Mn credit facility from BlackRock with pledged shares.
Udaan closed a $50-60 Mn top-up round from existing investors M&G Prudential and Lightspeed Venture Partners in May this year.

Udaan is India's largest eB2B platform for small businesses, offering wholesale prices and 1600+ SKUs.
It connects retailers to wholesalers and brands through a marketplace, logistics arm Udaan Express, and fintech udaanCapital.
udaanCapital provides working capital and invoice financing to retailers.
The platform serves kiranas, chemists, hotels, and offices, with categories like Food & FMCG and Healthcare & Pharma.
The udaan app offers quick sign-up, instant KYC verification, and a secure payment gateway.
Udaan acquired ShopKirana last year to deepen retail tech and last-mile distribution presence.

Udaan is working with Goldman Sachs to raise up to $200 Mn in equity.
It is also negotiating a $40 Mn credit facility from BlackRock with pledged shares.

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.