Udaan Secures US$160 Million in Structured Financing; BlackRock Likely to Invest US$45 Million

Udaan has announced a structured financing transaction worth approximately US$160 million, combining fresh equity, new debt, and debt-to-equity conversion as the B2B e-commerce company strengthens its financial position ahead of a potential public listing.

The financing package includes fresh equity from existing investors such as Lightspeed Venture Partners and M&G, alongside participation from a new investor. In addition, certain existing convertible bondholders will convert part of their debt into equity, while the remaining outstanding bonds will be extended under revised terms. BlackRock is expected to contribute approximately US$45 million through its private credit platform as part of the transaction.

The capital raise is designed to simplify Udaan’s capital structure, improve financial flexibility, and materially strengthen its balance sheet. The company said the transaction represents another important milestone in its journey toward building a sustainable, profitable, and institutionally resilient business.

Over the past 10 quarters, Udaan has significantly improved its operating performance, recording a revenue CAGR of around 25%, improving contribution margins by nearly 500 basis points, and reducing EBITDA burn by approximately 70%. The company also noted that several of its largest operating cities and clusters have achieved EBITDA profitability, demonstrating the success of its cluster-led operating model.

With a stronger financial foundation and continued support from existing and new investors, Udaan plans to deepen customer value, expand its market leadership, and accelerate its long-term public market ambitions while continuing to improve operational efficiency and profitability.