India’s B2B e-commerce platform Udaan has announced the successful closure of its Series G funding round, raising $114 million in fresh equity. The latest round was led by M&G Investments and Lightspeed, with participation from both new and existing investors.
Udaan to expand presence in FMCG and HoReCa segments
The Bengaluru-based firm said that the fresh capital will be used to grow Udaan’s presence in FMCG and HoReCa (Hotel, Restaurant, and Catering) segments. The company also plans to ramp up its private label initiatives in the staples category.
The funding will also help the firm expand deeper into under-served markets and strengthen its balance sheet, improving financial flexibility ahead of its planned IPO.
Udaan recorded strong financial performance in 2024 and 2025
Udaan has been following a regional cluster-led operating model, which it credits for driving growth with profitability. In 2024, Udaan recorded 60 per cent year-on-year growth and improved its contribution margin by over 300 basis points. In the first half of 2025, the company has added another 100 basis points to this margin.
The company also said it has cut fixed costs by 20 per cent, helping reduce its EBITDA burn by 40 per cent in 2024, and by another 20 per cent so far in 2025.
The company said the completion of its Series G round will allow it to continue investing in customer-tech, sales-tech capabilities, and in deepening its customer value proposition. The goal, Gupta said, is to deliver consistent growth with profitability at scale.
What is Udaan?
Founded in 2016, Udaan is India’s largest eB2B platform, claiming around 70 per cent market share. It operates across sectors like FMCG, Staples, Fruits & Vegetables, and Pharma. The platform connects thousands of suppliers and retailers, including national and regional brands.
Udaan also provides financial services to small businesses through UdaanCapital, helping address their working capital needs.