Lightspeed-backed Indian commerce Udaan raises $120 million • TechCrunch
India’s Udaan has raised $120 million in convertible bonds and debt led by existing shareholders and bondholders, a senior executive told employees in an email Thursday seen by TechCrunch, as it prepares to launch business-to-business e-commerce within 12-18 a month.
The new funding brings the startup’s total funding in the form of bonds and convertible debt in recent quarters to more than $350 million, Aditya Pandey, chief financial officer of Odan, wrote in an email Thursday. He said these funding rounds are “one of the largest structured fundraising in the country”.
Pandey wrote that the Bengaluru-based startup improved its unit economics by “about 1,000 basis points with equally robust improvements in both gross margins and operating cost.” “The right business design journey and unit economics have translated into 60%+ burnout reduction. An ongoing focus on customer first thinking and initiatives to enhance our value proposition have increased our monthly repeat buyer rates by 500+ basis points in the past two quarters.”
A spokesman for Oudan confirmed the email but declined to comment.
“Despite the funding challenges that the larger startup ecosystem faces, this fundraising reflects investors’ confidence in our business model and their endorsement of the journey to unit economies, driven by significant progress in the evolution of our business model and cost efficiencies, which we began last year.”
“These steps not only helped us achieve positive unit economics in the last quarter, but also helped us improve efficiency in the system, with huge cost benefits, which are key to building a sustainable business, and having the general market ready in 12-18 months.”
(more to follow)