B2B ecommerce unicorn Udaan recently concluded a fund raise of $120 million in convertible notes and debt, led by existing shareholders and bondholders.
In an internal email reviewed by YourStory, CFO Aditya Pande wrote that udaan has raised more than $350 million in funding through convertible notes and debt in the last four quarters.
“This fund raise reflects the confidence of investors in our business model and their endorsement of the journey to unit economics, driven by great progress in evolution of our business model and cost efficiency, that we initiated last year,” said the email.
Udaan aims to be public market-ready in the next 12-18 months.
Aditya added that the team has taken several steps to not only “achieve positive unit economics last quarter” but also improve efficiency, “with huge cost benefits”.
Outlining key achievements, the email stated that the company’s unit economics has improved by ~1,000 bps with equally strong improvements in both gross margins and operating costs. It added that “the right business design and unit economics has translated into a 60%+ reduction in burn”.
“Continued focus on customer-first thinking & initiatives on strengthening our value proposition for them have resulted in monthly buyer repeat rates increasing by 500+bps in the last two quarters,” said the email.
“With your support, we will continue to invest to build udaan as a professionally run organisation with scale, capabilities and resilience that can leverage the huge opportunity that Kirana commerce offers, while empowering the small businesses of Bharat,” concluded the email.
