Business-to-business ecommerce platform Udaan has closed a $114 million funding round led by existing investors M&G Prudential (UK) and Lightspeed Venture Partners, according to reports.

The round, executed at a flat valuation of $1.8 billion, includes the previously disclosed $75 million infusion from the two investors, which founder and CEO Vaibhav Gupta had announced during a town hall earlier this year.

Udaan’s valuation had dropped by 44 percent in 2023 to around $1.8 billion, down from its peak of $3.2 billion following a funding round in January 2021.

The Bengaluru-based firm said the fresh capital will be used to deepen its presence across key categories including fast-moving consumer goods (FMCG) and hotel, restaurant, and café (HoReCa) segments. Udaan also plans to expand its private label brands, especially in the staples category.

“This capital raise will also fortify Udaan’s balance sheet, providing enhanced financial flexibility as the company advances toward its public market debut,” according to the company.

Vaibhav says, “We have reduced our Ebitda burn by 40 percent every year for the last three years and are on track to achieve full group Ebitda profitability in the next 18 months.”

In FY24, Udaan reported operating revenue of Rs 5,707 crore, showing flat growth amid major operational restructuring aimed at reducing losses.

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The company restructured its debt late last year but still carries around $100 million in debt, with repayment timelines having been pushed out.