In a significant move for India’s B2B e-commerce landscape, Bengaluru-based Udaan has successfully closed its Series G funding round, raising a total of $114 million in series G. The round was completed in two tranches, reflecting continued investor confidence in Udaan’s growth potential and strategic direction. This latest round marks a critical milestone in Udaan’s journey as it strives to expand operations, deepen market penetration, and move towards profitability.
Funding Completed in Two Tranches
Udaan initially raised $75 million in February 2025 as part of the first tranche of the Series G round. The company then secured an additional $39 million in June 2025, bringing the total funding to $114 million. This capital infusion came from both new and existing investors, led by prominent firms such as M&G Investments and Lightspeed Venture Partners.
This fundraise highlights the company’s ability to attract strong investor interest despite the broader funding slowdown in the startup ecosystem. The Series G round also maintained Udaan’s valuation at approximately $1.8 billion, which is the same as its previous valuation in the Series round.
Strategic Use of Funds for Growth
Udaan will deploy the newly secured capital to expand and strengthen key operational areas. First, the company will double down on core categories, especially fast-moving consumer goods (FMCG) and staples, to fuel consistent growth. Second, it will accelerate its presence in underserved markets across India where B2B supply chains remain fragmented and inefficient.
In addition, Udaan plans to boost its private label initiatives in the staples category. These efforts aim to provide retailers with quality products at competitive prices. The company will also invest in enhancing its technology infrastructure and streamlining its supply chain capabilities to improve efficiency and service delivery.
Financial Performance Shows Steady Improvement
During the fiscal year ending March 2024, Udaan reported a modest 1.7% year-on-year increase in gross merchandise value (GMV). GMV rose to ₹5,706.6 crore from ₹5,609.3 crore in the previous financial year, underscoring steady traction in its platform usage and buyer engagement.
At the same time, the company managed to reduce its net losses significantly. Udaan cut its losses by 19.4%, lowering them to ₹1,674.1 crore from the previous fiscal year’s figures. This development showcases the company’s ongoing efforts to optimize costs and move closer to financial stability.
Path to Profitability Gains Momentum
Over the last year, Udaan has aggressively focused on improving its bottom line and achieving sustainable growth. In calendar year 2024, the company succeeded in reducing its EBITDA burn by 40%. Moreover, Udaan has already recorded an additional 20% reduction in EBITDA burn year-to-date in 2025.
This disciplined financial approach aligns with its medium-term goal of achieving full group-level EBITDA profitability. Udaan aims to accomplish this ambitious milestone within the next 18 months, signaling a strategic pivot towards long-term financial viability.
Investor Confidence Remains Strong
The successful closure of this funding round reflects robust investor faith in Udaan’s business model, execution capabilities, and future outlook. By focusing on core categories, expanding geographically, and improving unit economics, Udaan continues to evolve as a key player in India’s B2B commerce sector.
As the company prepares for its next phase of growth, the newly acquired funds will provide crucial support. Udaan now stands better positioned to drive deeper impact across the Indian wholesale ecosystem and deliver greater value to retailers and manufacturers alike.
