Udaan valuation tanks to $1.7 Bn in Series E round

B2B e-commerce platform Udaan announced $340 million in a Series E round co-led by M&G Plc and Lightspeed Partners Venture and existing investors and DST Global, Tencent, among several others in December. However, the Singapore-incorporated company didn’t disclose specifics.

Fintrackr has sifted through its regulatory filings to decode the round break-up, captable, and most importantly its fresh valuation.

The board at Udaan passed a special resolution to issue 10,15,753 Series E CCPS at an issue price of $338.6 per share to raise around $340 million, its regulatory filing sourced from the ACRA Singapore shows.

Lightspeed spearheaded the round with $160 million while M&G contributed $157 million. DST Global, Tencent Cloud, Altimeter Partners, and Apoletto Limited poured in $10.46 million, $11.83 million, $3.63 million, and $1 million during its Series E round.

According to data intelligence platform TheKredible, the company took a haircut of 59.3% in its valuation bringing it down to $1.3 billion (post-allotment of Series E round). At its peak, the Bengaluru-based unicorn was valued at $3.2 billion in January 2021.

Entrackr was the first to report about Udaan seeking new equity capital at a valuation of $1 to $1.5 billion in August last year.

Apart from the Series E round, Udaan also mopped up another $33 million in the Series F round from Microsoft Corporation, Tencent Cloud and its co-founder Sujeet Kumar with a capital contribution of $27.55 million, $2.82 million, and $2.7 million respectively, filings showed.

However, as per the company’s spokesperson — the aforementioned sum was a part of the same round (Series E), but different commercial constructs resulted in different nomenclature of the share series. Importantly, the shares issued in this extension (named Series F) were a bit high in price in comparison to Series E round which led its valuation to $1.7 billion.

Overall, the company’s valuation nosedived by 48% from its peak.

As per sources, it'll include accrued interest conversion. Udaan did not comment on the valuation.

Following the fresh proceeds, Lightspeed is the largest external shareholder with 35.7% while DST Global and M&G Plc collectively command 19.59%. Its co-founders: Sujeet Kumar, Amod Malviya, and Gupta Vaibhav together own 16.45% holding in the eight-year-old firm.

Head to TheKredible for Udaan’s complete captable.

Launched in 2016, the company runs a marketplace across categories including lifestyle, electronics, home & kitchen, staples, fruits and vegetables, FMCG, pharma, toys, and general merchandise. It claims to have a network of over 3 million retailers in 900 cities.

During the fiscal year ending March 2023, Udaan’s GMV declined 43.1% year-on-year to Rs 5,629 crore as compared to Rs 9,900 crore in FY22. Its losses also diminished by 33.7% to Rs 2,076 crore in FY23.