Udaan, a B2B e-commerce firm, announced on Monday that it has secured close to Rs 300 crore from investors, including Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital, in a debt funding round. This round comes after Udaan's $340 million Series E funding round, which was headed by M&G, a UK-based company, in December of last year.

The business intends to utilize the money to expand its geographic reach through its micro-market strategy, which establishes a small, geographically constrained territory, usually containing one or a few PIN numbers, in addition to fortifying its balance sheet.

Uddan added that it will use the funds to enhance its go-to-market capabilities, optimize supply chain operations, construct new micro-fulfillment centers, and increase customer service delivery.

In 2024, Udaan has experienced a 60% increase in sales and more than 50% of daily transacting buyers, the company said. Additionally, it reported that it has lowered its absolute Ebitda burn by 30% and is on course to turn a profit. According to earlier statements, Udaan will be ready for the public market by mid-2025.

Additionally, the company announced gains in gross margins of 200 basis points and contribution margins of 300 basis points so far, a 20% increase in buyer wallet share, and a monthly repeat ratio of over 90%.

Udaan has not yet released its FY24 financials, but in FY23, its operating revenue fell 43% year over year to Rs 5,609.3 crore, while its losses decreased by roughly 34% to Rs 2,076 crore from Rs 3,132 crore previous year.