India’s Udaan Secures $160 Million in New Funding for IPO Preparation
India’s B2B e-commerce platform, Udaan, has raised $160 million through a combination of fresh equity funding from Lightspeed Venture Partners and M&G Investments, additional debt, and bond conversions. This move aims to fortify its balance sheet ahead of an anticipated Initial Public Offering (IPO) within the next two years.
As reported by Bloomberg, the funding round addresses a recent default on $170 million in convertible notes that matured on June 30th. The new investor’s equity, along with bondholder conversions and extended terms, facilitates this strategic restructuring.
Udaan, founded in 2016 by former Flipkart engineers, has established itself as a prominent player in India’s B2B e-commerce market. It boasts a vast network, connecting over three million small retailers with manufacturers and wholesalers across various product categories. Despite recent financial challenges, Udaan maintains a significant market share of approximately 70% by volume, according to industry estimates.
The company has undergone several funding rounds in recent years to stabilize its finances. Notable milestones include a $75 million round in February 2025 and a $114 million Series G in June 2025, which valued Udaan at under two billion dollars. These fundraising efforts reflect the broader correction in Indian startup valuations post-2022.
Udaan’s IPO aspiration joins a growing queue of Indian tech companies preparing for public listings. Recent developments include Razorpay’s confidential IPO papers with India’s market regulator and Sarvam’s $234 million raise to reach unicorn status in June. The success of these listings will hinge on Udaan’s ability to demonstrate financial turnaround through its restructured debt and fresh capital.