Udaan’s Market Valuation Dips by Half to $1.8 Billion in Recent Down Round, Reveals ET Report
Udaan, a prominent player in the B2B (Business-to-Business) ecommerce sector, has experienced a substantial devaluation, witnessing a nearly 50% drop in its worth to approximately $1.8 billion, as reported by ET. This decline marks a significant departure from the Bengaluru-based startup’s prior valuation of $3.2 billion during its latest funding round in January 2021.
A down round, characterized by a funding round where a company secures capital at a valuation lower than its previous round, has contributed to Udaan’s diminished value. In December of the preceding year, Udaan successfully raised $340 million in a Series E funding round. Led by the UK-based savings and investment firm M&G Prudential, the round also saw contributions from existing investors such as Lightspeed Venture Partners and DST Global. This funding round included fresh equity investments as well as the conversion of existing debt (in the form of convertible notes) into equity.
Established by Vaibhav Gupta, Sujeet Kumar, and Amod Malviya, Udaan operates as a facilitator of B2B trade, prioritizing efficient supply chain and logistics operations. The company claims to manage daily deliveries across more than 1,000 cities and over 12,500 pin codes through its service, udaanExpress. Udaan has garnered support from notable backers including Lightspeed, Microsoft, and Tencent.
Despite the successful Series E funding, Udaan underwent a significant restructuring, resulting in the layoff of nearly 120 employees within a week. The company attributed these layoffs to an ongoing effort to build a more profitable business model with a focus on customer-centricity and agility. Some redundancies were identified as part of this strategic initiative.
CEO Vaibhav Gupta has been vocal about Udaan’s commitment to reducing costs on a quarterly basis, setting explicit operational targets. The company aims to achieve operational profitability within the next two quarters, as communicated to investors. However, Udaan is not alone in facing valuation challenges, as evidenced by BlackRock’s substantial reduction in the valuation of edtech giant BYJU’S by about 95%, plummeting from $22 billion to $1 billion.
These developments at Udaan underscore a turbulent period in the tech and startup ecosystem, reflecting broader trends and challenges within the industry.”
Read More On: Thestartupscoup.Com
