Business-to-business (B2B) ecommerce startup Udaan has closed a $200 million debt financing round through convertible notes from five new investors .According to an internal company note sent by its chief financial officer (CFO), Aditya Pande.
According to sources familiar with the matter, Tor Investment, Arena Investors, and M&G Investments are among the new investors who have participated in this round.
The decision to raise debt through convertible notes appears significant for Udaan, which has stated that it plans to go public within the next 18-24 months. These investors will be able to convert their convertible notes into equity at a later date, possibly before the IPO.
“We are excited and glad to share that we have five new marquee investors coming onboard the Udaan juggernaut, as part of our recently concluded convertible note financing. This round was oversubscribed 2x and also saw participation from our existing investors, including those who bought into the company through the secondary (Esop) round in H1 2021,” Pande said in his note.
According to him, the latest funding reflects Udaan’s “broadening the capitalisation strategy” as it prepares to go public. “With this convertible offering, we have begun to build a completely new muscle in our finance function – which we will continue to strengthen as we move forward,” Pande added. He was previously the CFO of the airline IndiGo.
The Bengaluru-based firm had previously secured $50 million in traditional debt financing.
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