Growth stage debt financing platform Evolution X Debt Capital (Evolution X) has committed investment in business-to-business (B2B) e-commerce platform Udaan. This investment is expected to be in the $35 to $40 million (nearly Rs 286 crore to Rs 386 crore) range. 

However, both companies have not disclosed the exact amount.  

“We believe that Udaan’s business model holds immense growth potential while keeping technological innovation at its forefront. We look forward to supporting the company's journey of transforming and improving India's huge ecosystem of retailers, traders, and wholesalers through innovative digitalised solutions”, said Rahul Shah, partner and co-head leading investments across India and Southeast Asia for Evolution X, said while commenting on the recent investment. 

Vaibhav Gupta, co-founder and chief executive officer of Udaan, added, “The efficiency enhancement and structural cost-optimisation initiatives that we undertook last year have already started showing results. Post achieving the milestone of positive unit economics in the previous quarter, we have witnessed robust growth in business during the last two consecutive quarters."

Gupta added that the unicorn would continue to invest in technology to further enhance customer experience and scale in addition to building additional capabilities to tap the potential of the kirana e commerce market. "We will deploy capital in areas that will drive our future growth and profitability. We are excited to join hands with Rahul and his team at Evolution X as long-term partners on this growth journey to change and organise the massive more than $1 trillion trade market of the country,” he added. 

Udaan raised nearly $400 million in the last four quarters, a Mint report pointed out. In October 2022, the company raised $120 million through convertible notes from its existing shareholders. 

Founded in 2016 by  Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, the B2B trading platform claims to have more than 3 million retailers since its inception. 

Recently the company laid off 300-350 employees in order to combat the economic downturn.