B2B firm Udaan raises $250 via convertible note and debt
PremiumOut of the $250 million raised, $200 million will be convertible notes or short-term debt that can subsequently be converted to equity, and $50 million will be debt
Business-to-business marketplace Udaan has raised $250 million in an additional round of funding, boosting its total fundraising to $1.4 billion so far.
The fresh capital-raise comprises $200 million worth of convertible notes or short-term debt that can subsequently be converted to equity and $50 million of debt, regulatory filings by the Bengaluru-based company showed.
Existing investors of Udaan took part in the round, which was subscribed two times. VBG Realty LLP made a ₹16 crore investment, while Blacksoil Asset Management and Blacksoil India Credit Fund invested ₹10 crore. Corsa Ventures invested ₹9 crore, and Walton Street India invested ₹5 crore, the filings showed.
Udaan, run by Hiveloop Technology Pvt Ltd, did not comment on the development. However, in an internal company note, Udaan’s chief financial officer Aditya Pande, said, “We are excited and glad to share that we have five new marquee investors coming on board the Udaan juggernaut, as part of our recently concluded convertible note financing. This round was oversubscribed 2X and also saw participation from existing investors, including those who bought into the company through the secondary (ESOP) round in H1 2021."
Pande said the move “reflects our broadening the capitalization strategy as we architect our journey for public markets and thereafter".
In September, Udaan received shareholder approval to raise up to ₹2,000 crore debt by issuing non-convertible debentures in tranches over a year. It raised $280 million in a funding round in January 2021 from Octahedron Capital and Moonstone Capital and existing investors Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital and Tencent.
Udaan entered the unicorn club in 2018 when it raised $225 million in its Series C round from existing investors DST Global, owned by Russian billionaire Yuri Milner and Lightspeed Venture Partners. Unicorns are privately held startups valued at $1 billion or more.
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Former Flipkart employees Amod Malviya, Sujeet Kumar, and Vaibhav Gupta co-founded Udaan in 2016. It brings traders, wholesalers, retailers, and manufacturers on a single platform, allowing them to find clients, suppliers, and products across categories and interact with one another directly for the lowest price.
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