Udaan closes Rs 651 crore funding round, seeks to deepen market penetration

Business to business e-commerce platform Udaan has closed a Rs 651 crore funding round with fresh equity infused by existing investors. The business plans to use the capital to expand its market presence, strengthen its partnerships, and ameliorate the customer experience. 

Udaan’s CEO Vaibhav Gupta informed employees in a meeting on February 17 that it undertook a Series G funding round, Inc 42 reported. The business raised the round at a flat valuation of $1.8 billion and could look to raise up to an additional $25 million in the coming financial quarter. 

The business had raised $340 million in funding in 2024 from investors including M&G Prudential and Lightspeed Venture Partners, which also participated in its most recent investment round, ET Bureau reported. Keen to strengthen its balance sheet, Udaan is focusing on profitability following consistent growth for over nine financial quarters. 

Vaibhav Gupta, Sujeet Kumar, and Amod Malviya launched Udaan in 2016 to tap into India’s business to business sector. Today, the business enables deliveries across more than 1,000 cities in the country, covering over 12,500 pin codes through its UdaanExpress service, according to Udaan.