**Udaan Explores Investment Opportunities with DC Advisory**
Udaan is currently in preliminary discussions with advisory firm DC Advisory to facilitate a potential investment process, with deal structures still under consideration. The specifics regarding the stake available and the overall deal value have yet to be finalized. Additionally, foreign debt investors are reportedly assessing opportunities to invest in Hiveloop Capital Pvt. Ltd, a non-banking financial company (NBFC) that operates under Udaan Capital, a subsidiary of Udaan. Hiveloop also manages Indusage Techapp Pvt. Ltd, which runs a digital lending platform.
These developments are part of a broader restructuring initiative aimed at optimizing costs, reducing financial burn, and enhancing unit economics to generate additional cash for expansion, especially as Udaan prepares for a potential public listing next year.
A spokesperson for Udaan stated, “We do not comment on market speculations,” while DC Advisory has not responded to inquiries for comment. According to sources, Udaan Capital’s portfolio is currently valued at approximately ₹500 crore. Over the past six years, the company has facilitated lending transactions totaling around one billion dollars through its NBFC division. Although independent verification of the NBFC’s valuation is not available, it is commonly estimated to be around two to three times its book value. The firm provides short-term loans to vendors on its platform and, like many NBFCs and private debt firms, is capable of recycling capital multiple times, which allows for a substantial transaction volume.
In June, Udaan successfully raised $114 million in a Series G funding round led by existing investors M&G Investments and Lightspeed Venture Partners, valuing the company at approximately $1.8 billion. This valuation reflects a decline from its peak of $3.2 billion in 2021. The company plans to utilize the new capital to broaden its product offerings, particularly in the fast-moving consumer goods (FMCG) and hotel, restaurant, and catering (HoReCa) sectors, while continuing to compete with other B2B platforms like IndiaMart, Meesho, and Flipkart Wholesale.
In recent years, Udaan has implemented significant cost-cutting measures, including workforce reductions and a strong focus on improving unit economics. The company reported a 40% annual reduction in EBITDA burn over the last three years and aims to achieve EBITDA profitability at the group level within the next 18 months.
**FAQ**
**What is Udaan’s current financial strategy?**
Udaan is focusing on restructuring its operations to reduce costs, improve unit economics, and prepare for a potential public listing, while exploring investment opportunities through its NBFC arm.
