Udaan Raises 50 Cr INR (Approximately $ 6.7 Million) In Debt By Allocating 1,000 Non Convertible Debentures (NCDs) In Multiple Tranches To Venture Credit Company Blacksoil
Earlier Inc42 reported that Udaan shareholders nodded to the startup to raise up to INR 2,000 Cr
In January, Udaan raised $ 280 million from Octahedron Capital, Moonstone Capital, Lightspeed Venture Partners, among others, for a valuation of $ 3.1 billion.
B2B e-commerce marketplace Udaan is raising 50 Cr INR (approximately $ 6.7 million) of debt through several tranches of venture credit firm Blacksoil. The development comes days after Inc42 exclusively reported that Udaan received the green light from shareholders to increase the debt up to INR 2000 Cr.
In accordance with regulatory documents, Udaan grants a total of 1,000 non-convertible debentures (NCDs) to Blacksoil.
The Bengaluru-based startup awards 100 Series A NCDs for INR 5 Cr to Blacksoil Capital Private Limited. The startup awards 600 NCD Series B for INR 30 Cr to Blacksoil Capital and 300 NCD Series B for INR 15 Cr to Blacksoil Asset Management.
Udaan is likely to close several rounds of debt over the next few months.
Founded in 2016 by former Flipkart employees Sujeet Kumar, Vaibhav Gupta and Amod Malviya, Udaan connects small and medium-sized businesses, manufacturers, wholesalers, traders and retailers to sell goods and other services.
Earlier this year, Udaan raised $ 280 million in funding Octahedron Capital and Moonstone Capital, Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital and Tencent for a valuation of $ 3.1 billion.
According to Udaan’s website, it offers more than 5 product categories on its platform, ranging from electronics and home appliances to shoes and drugs. The startup has more than 3 million retailers, more than 25,000 sellers and operates in more than 900 cities across the country.
Udaan became one of the fastest startups to achieve unicorn status in 2018, after winning a $ 225 million funding round from DST Global and Lightspeed Venture Partners.
Recently, the company made headlines, after major Indian brands FMCG Amul, Parle and other FMCG brands have stopped sourcing direct to the startup. According to media reports, consumer companies such as Amul, Parle, among others, alleged that Udaan was trying to monopolize distribution to retailers.
The start-up had previously taken Parle to India’s competition regulator, the Competition Commission of India, alleging it was facing a competitive setback due to Parle’s refusal to supply its much-requested products directly. without any objective justification ”.
Several press reports suggest that Udaan is likely to join the Indian startup bandwagon ahead of the IPO within the next 2 years.