Bengaluru-based B2B e-commerce giant Udaan has secured $114 million in fresh funding from existing investors as it eyes an IPO in the near future. This latest tranche of its ongoing Series G round builds upon the $75 million raised earlier this year, bringing the total to nearly $190 million in 2025 alone.
While Udaan has not disclosed its latest valuation, reports suggest it remains unchanged at approximately $1.8 billion, consistent with the company’s previous rounds.
A Major Step Ahead of IPO Aspirations
Udaan’s newest funding injection comes at a strategic time. The startup has long been planning an initial public offering (IPO) and has been quietly working to streamline operations, optimize costs, and fortify its presence in key verticals. With this fresh capital, the company is better positioned to fine-tune its market strategy ahead of going public.
Although no IPO timeline has been confirmed, analysts believe that Udaan could file its draft red herring prospectus (DRHP) within the next 12–18 months, depending on market conditions and business performance.
Who Is Udaan?
Founded in 2016 by former Flipkart executives Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, Udaan quickly became one of India’s fastest-growing unicorns. Its platform connects manufacturers, wholesalers, and traders directly with small and medium-sized retailers, cutting out middlemen and offering better pricing, logistics, and credit.
Operating across categories such as:
- FMCG (Fast-Moving Consumer Goods)
- Electronics
- Lifestyle
- Pharmaceuticals
- Agricultural staples
Udaan plays a pivotal role in India’s B2B commerce, particularly in smaller towns and rural areas often underserved by traditional supply chains.
How Will the Funds Be Used?
Udaan stated that the newly raised $114 million will be used to strengthen its presence in high-volume and high-margin verticals, notably:
- FMCG (Fast-Moving Consumer Goods): A core segment that offers steady demand and rapid turnover.
- HoReCa (Hotel, Restaurant, and Catering): A fast-expanding vertical with higher margin potential and a growing digital footprint.
Additionally, the company is expected to:
- Expand its logistics and warehousing infrastructure.
- Improve working capital support and supply chain financing for small retailers.
- Deepen data analytics and tech-led tools for inventory management and demand forecasting.
Udaan’s Unique Business Model
Udaan operates as a B2B e-commerce platform rather than a consumer-facing marketplace like Amazon or Flipkart. Its key differentiators include:
1. Logistics & Delivery
Udaan has built its own nationwide logistics network, covering over 900 cities and towns, specifically designed for bulk shipments. This enables timely deliveries even in non-metro regions.
2. Credit Financing
Through its Udaan Capital arm, the company provides short-term credit to retailers, helping them purchase inventory without upfront capital. This has become a critical enabler for small businesses that often struggle with access to formal finance.
3. Direct Manufacturer Access
Udaan offers retailers direct access to manufacturers and wholesalers, cutting down on layers of distribution and enabling cost-effective procurement.
What Makes This Round Significant?
This new $114 million funding from existing investors sends a strong signal of continued confidence in Udaan’s business model, scalability, and leadership team. In a climate where late-stage startups are often facing down rounds or valuation corrections, Udaan appears to be holding firm at a steady $1.8 billion valuation.
This also suggests that the company has successfully navigated recent challenges, including:
- Cost optimization initiatives
- Operational efficiency programs
- Workforce and logistics restructuring
These moves have reportedly helped Udaan inch closer to operational profitability, a key IPO benchmark for investors.
Challenges and Competition
Despite its strengths, Udaan operates in a competitive and complex landscape. B2B commerce in India is massive but fragmented, and new players are entering the space.
Key competitors include:
- Jumbotail – targeting the grocery supply chain.
- ElasticRun – focusing on rural distribution.
- ShopX and TradeIndia – offering digital supply chain solutions.
Moreover, traditional distributors and wholesalers still dominate large swathes of India’s retail trade, making digital adoption a gradual process.
However, Udaan’s early-mover advantage, deep logistics capabilities, and fintech integrations make it a formidable force in this sector.
What’s Next for Udaan?
Here’s what we can expect from Udaan in the coming quarters:
- IPO Filing: A DRHP submission is expected once macroeconomic conditions are favorable and internal metrics are IPO-ready.
- Vertical Expansion: Deeper penetration in the HoReCa segment, which has seen increased digital adoption post-pandemic.
- New Financial Products: Broader credit solutions and possible insurance or invoice factoring for retailers.
- AI-Driven Supply Chain: Enhanced AI tools for stock planning and demand prediction.
With India’s B2B commerce projected to touch $1 trillion in the next few years, Udaan is eyeing a sizable share of this transformation.
Udaan’s latest $114 million fundraising round marks a crucial chapter in its journey to reshape India’s wholesale trade landscape. With strong backing, clear vertical focus, and IPO ambitions, the Bengaluru-based startup continues to lead the charge in digitizing Indian retail at scale.
As it ramps up operations in high-potential areas like FMCG and HoReCa, and prepares for life as a public company, Udaan is reinforcing its role not just as a B2B marketplace — but as a core infrastructure player in India’s evolving retail economy.