Udaan's Parent Company Faces Bankruptcy Proceedings in Singapore

International creditors have filed for insolvency proceedings against Udaan's Singapore-based parent entity, Trustroot Internet Pvt Ltd, following its default on $170 million in bonds that matured on June 30. Creditors involved include Tor Investment Management, Samena Capital, and Nomura, among others.

The move comes after negotiations for a debt restructuring package failed, leading creditors to file a winding-up petition with the Singapore High Court. Udaan stated that these proceedings are related to offshore stakeholders and will not materially impact its India operations, where it continues to serve customers as usual.

Udaan, which has previously seen its valuation decline and reported significant losses, has been seeking new funding. The company has reportedly been in discussions with Goldman Sachs for a $150-$200 million equity round and with BlackRock for a $40 million credit facility.

Founded in 2016, Udaan connects retailers with wholesalers and brands through its marketplace and has expanded into logistics and financing. However, the broader challenges in India's B2B e-commerce sector have affected the company, with a 20% year-over-year revenue decline and a 37% decrease in losses reported in the last fiscal year.