B2B e-commerce platform Udaan has announced a $160 million financing package consisting of equity, new debt, and debt conversion. This move aims to clean up the company's capital structure and improve financial flexibility as it plans to shift its corporate domicile to India and prepare for a potential public listing.
Udaan, a major player in India’s business-to-business e-commerce sector, has finalized a $160 million financing deal. The arrangement involves a combination of fresh equity capital, new debt facilities, and the conversion of existing debt instruments into equity. By restructuring these obligations, the company intends to simplify its balance sheet and strengthen its financial standing ahead of its long-term objective to list on Indian stock exchanges.
Debt Restructuring and Equity Injection
The funding package includes an infusion of fresh equity from current investors as well as a new global investment firm. The company has also negotiated terms with holders of its convertible bonds. Under this agreement, a portion of these bonds will be converted into equity, while the maturity and terms for the remaining debt have been extended. This restructuring is intended to reduce immediate repayment pressure and provide the company with more room to focus on its operational goals. While media reports have linked firms like BlackRock to the private-credit portion of this financing, these details remain unconfirmed by the company.
Addressing Offshore Insolvency Proceedings
The announcement comes against the backdrop of legal challenges involving Trustroot Internet, the company’s offshore holding entity. Creditors had previously filed for insolvency proceedings against Trustroot in the Singapore High Court following a default on $170 million in convertible notes that matured at the end of June 2026. According to the company, these proceedings are restricted to offshore stakeholders and are separate from the core business activities conducted within India. The recent financing and restructuring agreement aims to resolve these claims, which were reported to total approximately $178 million, including interest.
Preparing for a Public Listing
This funding round is a follow-up to the $114 million Series G round raised in June 2025. Co-founder Vaibhav Gupta has previously outlined a strategic shift to relocate the company's corporate domicile from Singapore to India. This process is expected to be a precursor to an initial public offering. Management has suggested that the timeline for such a listing could span the next nine to 18 months, depending on the completion of the migration process and market conditions. Investors should monitor the progress of the company’s domicile shift and the actual impact of this debt restructuring on the company's interest burden and cash flows in upcoming financial updates.