Udaan Acquires New Debt From EvolutionX Following Recent Fundraising
- ByStartupStory | November 24, 2022
According to a source with knowledge of the situation, early-stage investor EvolutionX Debt Capital has invested $40 million in B2B marketplace Udaan. The investment comes after the company raised $120 million in funding two weeks earlier. “With this, the total funds raised by Udaan in the last four quarters have reached $400 million,” the individual cited above further said. The most recent investment, together with Udaan’s recent capital increase, will strengthen the business’s financial position and encourage operational efficiency, with a stronger emphasis on achieving profitable growth, according to a release from EvolutionX. Early in November 2022, EvolutionX disclosed that it had made its first debt investment in PharmEasy’s parent business, API Holdings.
Udaan raised $250 million in January, with $50 million in debt and $200 million in convertible notes, or short-term financing that can be turned into stock. The company received backing from M&G Prudential, Kaiser Permanente, Nomura, TOR, Arena Investors, Samena Capital, and Ishana Capital in the April round, which also included Microsoft Corporation.
Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, three ex-Flipkart workers, founded Udaan, an Indian small- and medium-business-focused B2B trade platform, in 2016. Udaan’s platform allows for the connection of distributors, wholesalers, retailers, and manufacturers. There, they may search for clients, vendors, and products across categories and get in touch with one another directly for the best deals. Across several sectors, including general merchandise, FMCG, pharma, home and kitchen, staples, fruits and vegetables, and electronics, the platform has more than 3 million retailers registered.
In addition to others, the company has funding from Octahedron Capital, Moonstone Capital, Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital, and Tencent. Aditya Pande, the chief financial officer of Udaan, informed staff members in an internal email issued last month that the company plans to go public over the following 12 to 18 months.
“We believe in efficiency as a driver of profitable growth and will continue to refine our cost structures and models. In this direction, we have taken numerous steps, with enhanced digital capabilities, to achieve efficiency and scale, become more agile, and remain competitive in the marketplace,” it said.
“As we move forward in our journey towards making Udaan a profitable company, the efficiency enhancement drive and the evolution in the business model have created some redundancies in the system, with some roles no longer required,” the company had said.
Follow Startup Story
Related Posts
