Business-to-business (B2B) e-commerce platform Udaan has raised $160 million in a structured financing round as the Bengaluru-based company strengthens its financial position ahead of its planned initial public offering (IPO).
The latest funding includes investments from existing investors and debt partners, reflecting continued confidence in Udaan’s efforts to improve profitability while expanding its business. The company said the fresh capital will be used to reinforce its balance sheet, support long-term growth and accelerate preparations for a public listing.
Along with the financing, Udaan announced that it has completed the acquisition of TrustRoot, a fintech platform focused on supply chain financing. The acquisition is expected to enhance Udaan’s embedded financial services by offering improved credit and working capital solutions to retailers, wholesalers and small businesses using its platform.
The company believes integrating TrustRoot’s technology and expertise will strengthen its financial ecosystem and help improve access to credit for merchants, an important requirement for India’s rapidly growing B2B commerce market.
Founded in 2016, Udaan connects manufacturers, wholesalers, retailers and traders through its digital marketplace, enabling businesses to source products across categories including grocery, electronics, lifestyle, pharmaceuticals and general merchandise. Over the past few years, the company has shifted its focus from aggressive expansion to improving operational efficiency and reducing losses.
The fresh funding comes as Udaan continues to report progress in lowering cash burn, improving contribution margins and building a more sustainable business model. These measures are seen as key steps before entering the capital markets.
India’s startup ecosystem has witnessed renewed investor interest in companies demonstrating a clear path to profitability, and Udaan’s latest financing reflects that trend. The company is expected to use the additional capital to strengthen technology, expand financial services and improve customer experience while maintaining disciplined growth.
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