Marketplace for B2B transactions Udaan recently secured $120 million of convertible bonds and debt, with current owners and bondholders leading the way, according to an internal email seen by GWM According to the email, the firm intends to go public in the next 12-18 months.
With this deal, Udaan's total funds collected through convertible notes and debt in the previous four months have surpassed $350 million, giving it one of the country's largest structural instrument fundraises.
"Despite the financial constraints that the wider start-up community is facing, this capital raise indicates investors' trust in our business plan and strong support for the path to unit economy."
According to the email, the firm plans to go public within the next 12-18 months.
The business raised $250 million in January of this year, including $200 million in convertible notes and short-term debt that could be converted to stock and $50 million in debt.
In April of this year, Microsoft Corporation joined the company's crowdfunding. M&G Prudential, Kaiser Permanente, Nomura, TOR, Arena Investors, Samena Capital, and Ishana Capital contributed to the $225 million round.
Udaan, founded in 2016 with former Flipkart workers Vaibhav Gupta, Amod Malviya and Sujeet Kumar provides a platform to merchants, wholesalers, retail, & manufacturers to connect and locate customers, providers, and products across categories.
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Octahedron Capital, Moonstone Capital, Lightspeed Venture Partners, DST Global and Tencent are among the company's investors. It has raised more than $1.5 billion in equity and debt to date, including $280 million in an equity investment round in January 2021.
A spokesman for the corporation refused to respond on the latest debt raising.
According to Pande's email for staff, the firm's unit economics increased by roughly 1000 basis points, and similarly significant increases in operating profit and operational costs.
Monthly buyer repetition rates grew by much more over 500 basis points in the past two quarters, according to the business.
With the general fundraising situation becoming bleak, numerous firms, including Udaan, Cars24, and Pharmeasy, have acquired or are in process of raising loans from worldwide financiers.
According to specialists, such debt typically convertible to equity and therefore is classified as senior debt, meaning it is rated higher than other debt holders and lenders.
This financing enables small businesses to weather the financial winter and wait for the overall investment situation to revive.
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