Growth stage debt financing platform EvolutionX Debt Capital has committed an undisclosed investment into B2B e-commerce startup Udaan. EvolutionX’s investment, alongside Udaan’s recent capital raise, will increase the total funds raised by the startup to almost $400 million in debt, making it one of the largest structured instrument fund raises in the startup ecosystem.
In October, Udaan secured fresh funding worth $120 million through a convertible note from existing investors and bondholders. It was valued at around $3.2 billion in that funding round.
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The funding also comes a few weeks after Udaan laid off hundreds of feet-on-street workers and sales supervisors as the startup looks to overhaul its operations.
EvolutionX is a dedicated pan-Asia debt fund for growth stage, technology-enabled companies.
In early November 2022, EvolutionX announced its maiden investment in Pharmeasy (API Holdings).
This investment into Udaan is the second investment in India committed by EvolutionX since the platform’s launch and entry into the Asian growth debt space in late 2021.
Rahul Shah, Partner and Co-Head leading investments across India and Southeast Asia for EvolutionX, said that the fund will continue to focus on its strategy of providing an alternative source of debt financing for technology companies to accelerate their growth and continue on their path to profitability.
“While venture debt has become a growing asset class in India, there is a clear gap in the growth debt space with EvolutionX emerging as a leading player to bridge this gap and has already committed approximately $85 million in this quarter to category-leading technology companies, led by promising founders and reputed investors,” added Shah.
Vaibhav Gupta, Co-founder & CEO, Udaan, said that that the company had achieved positive unit economics in the previous quarter with additional plans to to invest in technology to further enhance customer experience and additional capabilities to tap the potential of the kirana e-commerce market.
“We are excited to join hands with Rahul and his team at EvolutionX as long-term partners on this growth journey to change and organise the massive $1 trillion trade market of the country,” Gupta added.
EvolutionX provides amortising term debt facilities in the range of $20-50 million along with warrants or convertible instruments.
The fund seeks to invest in technology companies in a wide array of sectors such as consumer, education,financial services, healthcare, logistics, and industrial development in India, China, and Southeast Asia.
Headquartered in Singapore, EvolutionX has built a robust investment team in Singapore, as well as a team based in Mumbai, India in 2022 and intends to establish its presence in China in 2023.