Udaan, a start-up based in India, has raised US $ 120 million in convertible notes and debt. The company is preparing to go public within the next 12-18 months.
With this, the total funding raised by the e-commerce unicorn in convertible notes and debt stands at US $ 300 million, the company’s Chief Financial Officer, Aditya Pande wrote in an email. The email also specified some of the numbers which Udaan has managed to reach including improving unit economics by ~ 1,000 bps with efficiencies in both gross margins and operating costs. Pande said that the fundraising reflects the confidence of investors in Udaan’s business model and progress.
Pande mentioned in an internal email, ““The journey of right business design and unit economics has translated into a 60 per cent + reduction in burn. Continued focus on customer-first thinking and initiatives on strengthening our value proposition for them have resulted in monthly buyer repeat rates increasing by 500+bps in the last two quarters.”
Microsoft Corporation joined the company’s fundraising in April this year. The US $ 225 million round was stitched together by investors such as M&G Prudential, Kaiser Permanente, Nomura, TOR, Arena Investors, Samena Capital and Ishana Capital.
Currently Udaan has 3 million users and 30K sellers across over 900 cities.
Note: This year, debt and convertible note fundraising have increased in India as company owners have become more cautious about diluting their stock shares.
