According to reports, Business-to-business (B2B) ecommerce startup Udaan has raised $120 million through convertible notes and debt from existing shareholders and bondholders.

Aditya Pande, chief financial officer, Udaan says, “With this round, the total funds raised by Udaan through convertible notes and debt in the last four quarters has crossed $350 million, making it one of the largest structured instruments fund raises in the country .”

Reports suggest that $30-50 million is expected to come in another tranche.

According to reports, Udaan is in advanced stages of talks to close a fresh round of debt financing of $150-200 million through convertible notes.

The company was planning to go public by May 2023. On October 12 that the IPO was likely to be delayed by another two quarters, at least.

The Lightspeed Venture Partners-backed startup was planning to list abroad since the company is headquartered in Singapore.

According to Pande, the company has improved its unit economics by 10 percent, with strong improvements in both gross margin and operating costs, and the burn rate reducing by 60 percent.

Continued focus on customer-first thinking and initiatives on strengthening our value proposition for them have resulted in monthly buyer repeat rates increasing by five percent in the last two quarters.

The latest funding for Udaan comes at a time when late-stage startups are increasingly finding it difficult to raise funds due to the challenging macro-economic environment. Many companies are resorting to raising funds through debt instruments, thereby preserving valuation.