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Udaan in Talks with M&G Prudential for Equity Round, Valuation Expected to Dip Below $2 Billion

Business BytesBusiness Bytes · 1y ago
Udaan in Talks with M&G Prudential for Equity Round, Valuation Expected to Dip Below $2 Billion
Medial

Indian B2B e-commerce platform Udaan is in talks with UK-based M&G Prudential for a new equity round, aiming to secure an investment of $100-150 million. This investment may result in a significant decrease in Udaan's valuation, potentially falling below the $2 billion mark. The need for an equity round and valuation correction is attributed to intense competition, changing market dynamics, operational challenges, and regulatory hurdles in India's evolving B2B e-commerce sector. While the valuation adjustment may seem challenging, Udaan's collaboration with M&G Prudential could bring valuable insights and international support, helping the company navigate these challenges and tap into the sector's potential.

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Udaan closes Series G round at $114 Mn

EntrackrEntrackr · 1m ago
Udaan closes Series G round at $114 Mn
Medial

Udaan closes Series G round at $114 Mn: B2B e-commerce platform Udaan has announced the closure of its Series G round at $114 million, led by M&G Investments and Lightspeed, with participation from other existing and new investors. In February, the Bengaluru-based company raised $75 million as the first tranche of the Series G round at a flat valuation. According to Entrackr’s estimate, Udaan was valued at around $1.8 billion in the previous round, when it raised $340 million led by M&G Plc, with participation from Lightspeed and others. The fresh capital will be deployed to strengthen Udaan’s category and customer footprint, with focus on fast-moving consumer goods (FMCG) category and hotel, restaurant, and catering (HoReCa) customer segment, the company said in a press release. Udaan will also accelerate its private label brands initiatives in the staples category. This capital raise will also fortify Udaan’s balance sheet, providing enhanced financial flexibility as the company advances toward its public market debut. “Over the last 3 years, we have transformed the business by building cost as a capability and a competitive advantage. We have reduced our EBITDA burn by 40% every year for the last 3 years and are on track to achieve full group EBITDA profitability in the next 18 months,” said Vaibhav Gupta, co-founder and CEO, Udaan. Udaan claims to have clocked more than 60% year-on-year (Y-o-Y) growth in CY 2024, alongside a contribution margin improvement of over 300 basis points. Along with this margin growth and operating leverage at scale, Udaan also reduced its fixed costs by 20%, resulting in a 40% reduction in EBITDA burn in CY 2024 and an additional 20% reduction year-to-date in CY 2025. While Udaan has yet to disclose its FY25 numbers, its gross revenue (GMV) grew only 1.7% to Rs 5,706.6 crore in FY24, compared to Rs 5,609.3 crore in FY23. However, it managed to control its losses by 19.4% to Rs 1,674.1 crore in the same period.

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