Udaan Secures $160 Million Financing Round to Strengthen Balance Sheet
B2B e-commerce unicorn Udaan announced a financing round of approximately $160 million aimed at strengthening its balance sheet and simplifying its capital structure.
Indian B2B e-commerce company Udaan has announced securing approximately $160 million in financing. The funds are intended to strengthen the company's balance sheet and simplify its capital structure while addressing debt obligations.
The financing round will comprise a mix of new equity, new debt, and debt-to-equity conversion. Udaan stated that existing investors, along with a new investor, are expected to participate. Some existing bondholders will convert a portion of their debt into equity, while remaining bonds will be extended under revised terms.
This funding comes at a critical juncture, as creditors recently initiated insolvency proceedings against the company's Singapore-based parent entity over defaulted convertible notes totaling around $170 million. The new financing may serve to resolve this overhang by restructuring outstanding debt.
Udaan asserted that the transaction will materially strengthen its balance sheet, simplify its capital structure, and improve its readiness for a future public listing. The company has been focusing on improving profitability amidst a slowdown in the B2B e-commerce sector, by cutting costs and concentrating on high-frequency categories like FMCG.