National, July 14, 2026: udaan, India’s leading eB2B platform, today announced a proposed financial transaction of approximately USD 160 Million comprising fresh equity, new debt and debt-to-equity conversion. As part of the proposed transaction, existing equity shareholders along with a new investor will infuse fresh capital into the company, while certain existing convertible bondholders will convert a portion of their outstanding bonds into equity. The remaining outstanding balance of the convertible bonds will be extended on revised terms and conditions.
Additionally, one of the world’s leading investment management firms, is participating in the transaction with a commitment of approximately USD 45 Million through its private credit platform, providing fresh financing that further strengthen udaan’s balance sheet and support the company’s long-term growth ambitions.
The transaction is expected to materially strengthen udaan’s balance sheet while simplifying capital structure, providing greater financial flexibility to support the company’s next phase of growth and advancing its long-term public market readiness plans.
The new financing builds on udaan’s strong business momentum and consistent execution over the last several quarters. Over the 10-quarter period from Q4 CY23 to Q1 CY26, the company delivered approximately 25% CAGR in revenue, improved contribution margins by nearly 500 basis points, and reduced EBITDA burn by around 70%. With its largest operating cities and clusters now EBITDA profitable, the company continues to demonstrate sustained progress towards profitable growth and the scalability of its cluster-led operating model.
The company has also continued to expand its portfolio of higher-margin businesses, with its private label portfolio now contributing 15–25% of Staples sales, across operating cities. This has further strengthened the quality of earnings while improving operating leverage and unit economics.
Vaibhav Gupta, Co-Founder & CEO, udaan, said, “This financing round marks another milestone in udaan’s journey towards building a sustainable, profitable and institutionally resilient business. The continued support from our existing investors, alongside the participation of new capital partners, reflects strong conviction in our business fundamentals and long-term opportunity. Over the last several quarters, we have consistently improved our operating performance by delivering healthy growth while significantly strengthening profitability and cash efficiency. With a stronger balance sheet and a simpler capital structure, we are well positioned to continue investing in customer value, deepening our market leadership and progressing towards our long-term public market ambitions.”
The proposed transaction remains subject to customary closing conditions, documentation and regulatory approvals, where applicable.
udaan’s business has delivered steady and durable improvements in both growth and profitability over the past several quarters. Over the 10-quarters from Q4 CY23 to Q1 CY26, udaan’s revenue grew at a CAGR of approximately 25%, while contribution margin improved by nearly 500 basis points and EBITDA burn reduced by around 70%.
udaan continues to sharpen its focus on higher-margin businesses, with its private label portfolio now contributing 15–25% of Staples sales across operating cities, strengthening the quality of earnings and driving operating leverage. In another significant milestone, the company’s largest operating city, Bengaluru, has achieved EBITDA profitability, demonstrating the effectiveness of disciplined execution and reinforcing steady progress towards sustainable, long-term profitable growth.
“This transaction is an important milestone in udaan’s journey. It creates a cleaner, more deleveraged balance sheet, simplifies the capital structure and brings together a strong, long-term investor base. Backed by the company’s consistent improvement in operating performance and disciplined execution, udaan is well positioned for its next phase of growth. Public markets reward businesses that compound sustainably, and this transaction provides a strong foundation as the company progresses towards its public market ambitions.” Rajat Ranjan, Managing Director, Kotak Mahindra Capital Company (KMCC).