B2B Ecommerce unicorn Udaan closes $200 million debt financing round
- ByTejika Bajaj | January 6, 2022
The business to business (B2B) e-commerce unicorn Udaan has recently raised a sum of $200 million in a debt financing round by issuing convertible notes to five new key investors.
While the names of the investors have not been disclosed, people close to the development stated that Tor Investment, Arena Investors and M&G Investments are among the few new investors roped in by the ecommerce marketplace.
The recent move to issue convertible notes comes right after the startup revealed its intent to go public within the next 18-24 months. A similar pattern has been observed by various prominent brands such as Spotify, Uber and AirBnB right before their IPO. This announcement thus points towards a public listing arriving soon. The investors can convert their convertible notes into equity post the IPO.
Addressing his team through a common mail note, the Chief Financial Officer of Udaan, Aditya Pande expressed, “We are excited and glad to share that we have five new marquee investors coming onboard the Udaan juggernaut, as part of our recently concluded convertible note financing. This round was oversubscribed 2x and also saw participation from our existing investors, including those who bought into the company through the secondary (ESOP) round in H1 2021. The latest financing reflects Udaan’s “broadening the capitalization strategy” as it embarks on its IPO journey. With this convertible offering, we, as a company, have started building a complete new muscle in our finance function — which we will continue to strengthen as we go forward.”
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