Udaan Raises $114M in Series G Round as it Focuses on FMCG, HoReCa, and IPO Readiness

B2B e-commerce company Udaan has raised $114 million in fresh funding as part of its ongoing Series G round, backed by long-time investors M&G Investments and Lightspeed Venture Partners. This takes the company's overall funding to more than $1.95 billion, a further milestone on its path to empowering India's small retailers and businesses.

This round of funding will drive Udaan's expansion plans, with a specific emphasis on the fast-moving consumer goods (FMCG) and hotel, restaurant, and catering (HoReCa) categories. The company also plans to speed up the growth of its own brands, especially in staples.

CEO and co-founder Vaibhav Gupta pointed out that Udaan has managed to make cost management a strategic advantage. The company, in the last three years, has lowered its Ebitda burn by 40 percent per annum. In 2024, it also lowered fixed costs by 20 percent and lifted contribution margins by over 300 basis points, accomplishing over 60 percent year-on-year growth in this area.

Udaan runs in varied categories such as electronics, pharma, staples, and fresh produce. Its fintech business, udaanCapital, also finances small businesses with working capital solutions.

With the merging of its entities into Hiveloop E-Commerce now being done, Udaan is preparing for a public listing in 2026. In FY24, revenue climbed to ₹5,706 crore whereas losses reduced by 19 percent to ₹1,674 crore.

Udaan's tale is becoming one of concentrated, margin-building growth, demonstrating that sound fundamentals and controlled execution can still work in India's competitive startup scene.