Business-to-business trade platform Udaan has recently wrapped up a fund raise of USD 120 million (about Rs 989.89 crore), through convertible notes and debt, led by existing shareholders and bondholders, according to an internal note.
The internal communication to Udaan employees from chief financial officer Aditya Pande mentioned that the company is looking at “being public market ready in 12-18 months”. With the latest round, the total funds raised by Udaan through convertible notes and debt in the last four quarters have crossed USD 350 million. “We are glad to share with you that Udaan has recently concluded a fund raise of USD 120 million in convertible notes and debt, led by existing shareholders and bondholders,” the note said.
These steps have not only helped the company achieve positive unit economics last quarter, but also improved efficiency in the system, with huge cost benefits, “which is key to building a sustainable business, and being public market ready in 12-18 months”, it added.
An email sent to Udaan on the internal note did not elicit a response. As per the note, despite the funding-related challenges being experienced by the larger startup ecosystem, the latest fund raise reflects the confidence of investors in the company’s business model. “We have made significant investments to build a tech-led solid and sustainable business, offer affordable & quality products, better services, and superb experience to our business partners,” the note said.
Further, it said that while the progress achieved was heartening, there is still a journey ahead to build a sustainable business, especially in the increasingly challenging global market conditions. “However, the success of our various initiatives and endorsements from investors further strengthens our commitment to continue making focused interventions that are critical to our plans of achieving profitability,” the note added.
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