Udaan has raised $160 million in fresh financing to strengthen its balance sheet and prepare for a potential initial public offering.
The B2B e-commerce platform is using the capital to support its long-standing listing ambitions while expanding its higher-margin private-label business, which now accounts for 15-25% of staples sales across its operating cities.
This shift is helping improve earnings quality and operating leverage ahead of a public debut.
The funding round comes as Udaan prepares to sign a recapitalization agreement, a move designed to stabilize its financial position before entering public markets.
The company is focusing on improving its unit economics and margin profile, key metrics that investors will scrutinize during the IPO process.
The private-label expansion is a strategic pivot aimed at reducing reliance on third-party brands and capturing more value in the supply chain.