B2B eCommerce Platform Udaan Plans IPO After $250M Fundraise

Indian B2B eCommerce platform udaan is planning to launch an initial public offering (IPO) in 18 months now that it has wrapped up a $250 million funding round that came through a $200 million convertible note, Business Standard reported Wednesday (Jan. 5).

The company had a valuation of $3.1 billion during its $280 million fundraising round in January 2021 and will set a new valuation either during its pre-IPO quests for fresh capital or at the time of the IPO in the middle of 2023.

“We are excited to share that we have five new marquee investors coming onboard the udaan juggernaut as part of our recently concluded convertible note financing,” said udaan Chief Financial Officer Aditya Pande, per the report. “This round was oversubscribed 2x and also saw participation from existing investors.”

Pande said he sees the use of the convertible note as a way of “broadening the capitalization strategy” of his company, according to the report.

“With this convertible offering, we, as a company, have started building a complete new muscle in our finance function,” he said, per the report. “We will continue to strengthen this as we go forward.”

udaan used the $280 million it raised last January to reach out to more small- to medium-sized businesses (SMBs) around the country, expand its selection of products, improve the user experience, bolster its technology program and supply chain finance infrastructure and expand SMB financing capabilities.

Read more: Udaan Raises $280 Million for B2B eCommerce in India

The 2021 round was backed by existing investors Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital and Tencent, as well as new investors Octahedron Capital and Moonstone Capital.

udaan works in lifestyle, electronics, home and kitchen, staples, fruits and vegetables, fast-moving consumer goods, pharmaceutical, toys and general merchandise. It helps small manufacturers, farmers and brands move their products.