Udaan, a leading B2B e-commerce platform, has secured $340 million in a Series E funding round, with M&G Plc taking the lead and participation from Lightspeed Venture Partners and DST Global. The company has articulated its plans to use the newly raised capital to improve customer experiences, broaden market presence, cultivate strategic partnerships with vendors, and strengthen long-term capabilities in supply chain and credit.

Udaan’s co-founder and CEO, Vaibhav Gupta, expressed optimism about the fundraising, remarking, "It enables our continued journey of growth and profitability, positioning us well to be public-market ready in the next 12-18 months". Although the precise valuation remains undisclosed, it is speculated that the equity component may have transpired at a relatively lower valuation compared to Udaan’s peak valuation of approximately $3 billion.

Founded in 2016, Udaan functions as a facilitator for supply chain and logistics activities, with a primary focus on B2B trade. The company serves daily deliveries to over 1,200 cities through udaanExpress. Operating across various sectors such as lifestyle, electronics, home & kitchen, staples, fruits & vegetables, FMCG, pharma, toys, and general merchandise, Udaan has established a broad spectrum of operations.

The platform boasts a significant user base, encompassing over 3 million retailers and numerous sellers nationwide. Despite notable achievements, its gross revenue (GMV) saw a decline of 43.1% to Rs 5,629 crore in FY23 from Rs 9,900 crore in FY22, as per the financial statements filed by Trustroot Internet, its group company in Singapore. Concurrently, losses also contracted by 33.7% to Rs 2,076 crore in FY23 from Rs 3,132 crore in FY22.

Despite a workforce reduction of approximately 500 employees at Udaan over the past year, the company emphasized that these measures were implemented to improve operational efficiency rather than being driven by financial constraints.