Udaan raises $114M led by M&G, Lightspeed

B2B ecommerce company Udaan has raised $114 million in a fresh funding round led by M&G Investments and Lightspeed Venture Partners as it sharpens its focus on profitability and edges closer to a long-anticipated public listing.

The Bengaluru-based company said the new funds will be used to expand its footprint in the fast-moving consumer goods (FMCG) and HoReCa (hotels, restaurants, and catering) segments, build private-label offerings, and strengthen its balance sheet.

The funding comes as India’s once freewheeling startup capital flows have tightened. “This fundraise is a vote of confidence in the disciplined, margin-focused model we’ve built over the past three years,” said Vaibhav Gupta, Co-founder and CEO, Udaan. “We are on course to achieve full EBITDA profitability within the next 18 months.”

Headquartered in Bengaluru, Udaan was founded in 2016 by former Flipkart executives Amod Malviya, Sujeet Kumar, and Vaibhav Gupta. Udaan operates what it claims is India’s largest eB2B platform, covering over 12,000 pin codes and offering products across staples, pharma, fruits and vegetables, and electronics. The company says it now commands approximately 70% market share in the space.

Udaan’s focus from growth-at-any-cost to disciplined execution comes at a time when peers in the segment—including Jumbotail, ElasticRun, and ShopKirana—are also trying to balance scale with sustainability. Udaan has raised nearly $2 billion to date, making it one of the best-funded players in the segment.

To control costs and drive efficiencies, Udaan has restructured around a “cluster-led” operating model that decentralises execution to regional teams. That shift, the company says, helped it clock over 60% year-on-year revenue growth in calendar 2024 while improving contribution margins by over 300 basis points. In early 2025, Udaan posted a further 100 basis point improvement and cut fixed costs by 20%, reducing its

EBITDA burn by another 20% this year.

“Udaan’s ability to maintain growth while improving margins is a positive signal ahead of its public market ambitions,” said a partner at a global venture firm not involved in the deal. “But the road to IPO will depend on sustained performance, especially in credit quality, logistics, and private label margins.”

Udaan has not specified a timeline for its public market debut, though people familiar with the company’s thinking say a listing could be on the table within the next 12 to 24 months, depending on market conditions and profitability metrics.

The company also continues to build out its fintech play, UdaanCapital, which provides working capital to retailers and suppliers—a critical component of its monetization strategy.