India's Udaan raises $160 million in fresh funding as it aims to improve its balance sheet ahead of its initial public offering (IPO).
TL;DR: Indian B2B ecommerce company Udaan has raised $160 million by combining new equity, debt, and the conversion of bonds to improve its balance sheet ahead of an IPO.
Udaan, an Indian B2B ecommerce platform, has raised $160 million in a funding round that includes fresh equity from a new investor, additional debt, and the conversion of existing convertible bonds into equity, as reported by Bloomberg. Lightspeed Venture Partners and M&G Investments are participating in this round, which aims to streamline Udaan's balance sheet in preparation for a planned initial public offering expected within the next two years.
The timing of the funding is significant as Udaan defaulted on $170 million in convertible notes that matured on June 30, according to a Business Standard report earlier this month. Under this new agreement, a new investor will provide fresh equity while existing bondholders convert their bonds into shares. Those bondholders who opt not to convert will have their remaining notes extended under revised terms.
Founded in 2016 by three former Flipkart engineers, Udaan has created a marketplace that connects manufacturers and wholesalers with over three million small retailers in India. The platform services various categories, including electronics, groceries, pharmaceuticals, and general merchandise, claiming about 70 percent of India’s B2B ecommerce market by volume, as per industry estimates cited by Caproasia. Vaibhav Gupta, one of the co-founders, became CEO in 2021 after co-founder Amod Malviya stepped down, while the third co-founder, Sujeet Kumar, remains on the board.
Over recent years, the company has repeatedly raised funds to strengthen its finances, closing a $75 million round in February 2025, followed by a $114 million Series G in June 2025, which valued Udaan at under two billion dollars, according to VarIndia and Outlook Business. This valuation is a significant drop from its previous peak of three billion dollars during an earlier funding round, reflecting the correction in Indian startup valuations after 2022.
The company’s IPO aspirations position Udaan alongside a growing number of Indian tech firms preparing for public offerings. Last month, fintech company Razorpay filed IPO documents confidentially with India’s market regulator and AI startup Sarvam raised $234 million at unicorn status in June, indicating renewed investor interest in Indian tech. For Udaan, its path to a public listing hinges on whether the restructuring of its debt and the new capital can achieve the margin improvements that public market investors will expect.
India’s B2B ecommerce sector is still largely unorganized, with millions of small retailers sourcing products through fragmented supply chains. This structural gap presents an opportunity for Udaan, but the company must first demonstrate its ability to convert market leadership into sustainable unit economics, a challenge made more pressing by its recent bond default.
Published July 14, 2026 - 4:17 pm UTC
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India's Udaan raises $160 million in fresh funding as it aims to improve its balance sheet ahead of its initial public offering (IPO).
Indian B2B ecommerce company Udaan has secured $160 million through a mix of new equity, additional debt, and bond conversions as it gears up for a public listing in the next two years.