Udaan faces sharp valuation drop to $1.8B in latest fundraise
Udaan, the B2B ecommerce unicorn, finds itself at the epicenter of a financial recalibration, witnessing a substantial decline in its valuation. This valuation ‘down round’, has resulted in a reduction of nearly 50%, bringing Udaan’s valuation to around $1.8 billion. This sharp decrease is noteworthy, especially considering the platform’s previous valuation of $3.2Bn nearly three years ago.
Udaan’s financial trajectory took a turn with the culmination of a $340 million financing round in December, in a combination of convertibles and equity. However, crucially, the company opted not to disclose its valuation at the time, leaving the market to speculate. Insiders familiar with the intricacies of the deal reveal that it was a carefully orchestrated and structured transaction. The initial step involved the conversion of debt, followed by the infusion of fresh equity. As a result, Udaan’s recalibrated valuation now stands at approximately $1.8 billion.
Udaan serves as a comprehensive online marketplace connecting manufacturers, wholesalers, traders, and retailers with their potential business buyers. The platform facilitates the seamless exchange of a diverse range of products across various categories, including electronics, apparel, home goods, and more. Udaan’s digital infrastructure streamlines the procurement process, offering businesses a transparent and efficient platform to discover, connect, and transact. With the current development, one of the prominent transformations is a significant overhaul of its logistics policy.
The platform has shifted from a national logistics network to a localized approach, a move strategically crafted to trim operating costs, with a specific focus on reducing transportation expenses. Beyond financial maneuvers, Udaan has embarked on a journey of substantial workforce restructuring. Over the past 12-18 months, the platform has undertaken a systematic reduction in its workforce. From a peak of around 5,000 employees, Udaan now maintains a workforce of 1,500. The most recent manifestation of this restructuring occurred in December, with the release of approximately 100 employees.
The company’s strategic focus includes achieving operational profitability within the next two quarters, and aligning its goals with the evolving demands of the market. The company’s strategic focus includes achieving operational profitability within the next two quarters, aligning its goals with the evolving demands of the market.
