Udaan raises $120 mn in funding winter, plans IPO in 12-18 months

Enterprise-to-business (B2B) e-commerce platform Udaan has raised $120 million in convertible notes and debt, because it plans an preliminary public providing (IPO) within the subsequent 12-18 months amid the funding winter.

Udaan`s chief monetary officer Aditya Pande wrote in an e mail seen by IANS that with this spherical, the whole funds raised by Udaan via convertible notes and debt within the final 4 quarters have crossed $350 million, making it one of many largest structured instrument fund raises within the nation.

“Regardless of the funding associated challenges being skilled by the bigger start-up ecosystem, this fund increase displays the arrogance of buyers in our enterprise mannequin and their endorsement of the journey to unit economics, pushed by nice progress in evolution of our enterprise mannequin and price effectivity, that we initiated final yr,” mentioned Pande.

He added that these steps haven’t solely helped us obtain optimistic unit economics final quarter, but additionally improved effectivity within the system, with enormous price advantages, “which is vital to constructing a sustainable enterprise, and being public market prepared in 12-18 months”.

The Bengaluru-headquartered startup improved its unit economics by “1,000bps with equally robust enhancements in each gross margins and working price,” mentioned Pande.

“The journey of proper enterprise design and unit economics has translated into over 60 per cent discount within the burn. Continued give attention to customer-first considering and initiatives on strengthening our worth proposition for them have resulted in month-to-month purchaser repeat charges rising by greater than 500 bps within the final 2 quarters,” he added.

Earlier this yr, Udaan raised $250 million, $200 million in convertible notice and $50 million in debt.

Within the calendar yr 2021, Udaan raised $500 million, taking its complete increase to $1.4 billion to this point.

To cater to the rising demand, Udaan plans to scale its warehouse capability to 50 million sq. toes throughout the nation within the subsequent seven-eight years.