Online B2B wholesale trading platform udaan, which focuses on small and medium enterprises, on Monday announced the closing of its fresh debt financing of around Rs 300 crore from Lighthouse Canton, Stride Ventures, InnoVen Capital and Trifecta Capital. The latest round follows the $340 million Series E funding the company raised in December last year, led by M&G Plc with participation from existing equity investors Lightspeed Venture Partners and DST Global.

The current investment will be deployed to expand the geographic footprint through micro-walk strategy as well as optimizing operations by improving go-to-market (GTM) capabilities, streamlining supply chain processes and investing in opening new micro-fulfillment centers (MFCs), has the company said.

Speaking about the investment, Kiran Thadimarri, Senior Vice President Group Finance at Udaan, said the new funding round is a confirmation of the consistent quarter-on-quarter growth achieved by the company over the past ten quarters thanks to its various customer-focused initiatives. initiatives.

“This funding will further strengthen our financial position, providing us with the flexibility to double down on key strategic initiatives such as the expansion of our cluster model to drive operational excellence, enabling us to continue our path to profitability while consolidating our position in the market,” said Thadimarri.

Founded in 2016, udaan claims approximately 70% market share in the online B2B commerce market, operating nationwide. Consumer productscommodities, fruits and vegetables and pharmaceutical categories. The company also offers a credit and cash flow management solution for SMEs under its fintech arm udaanCapital.

“This funding round underscores our confidence in udaan’s strategic direction and its ability to drive sustainable growth for small businesses around the world. Indiasaid Ankit Agrawal, executive director of Lighthouse Canton.

udaan said it was on track to achieve profitability, with revenue growth of 60 percent and an increase of more than 50 percent in buyers transacting daily, driving deeper market penetration and increasing share of wallet among retailers.

Additionally, he said gross margins have improved by 200 basis points and contribution margins by 300 basis points since the start of the year, alongside a 20 percent increase in portfolio share of buyers and at a monthly repeat rate of more than 90 percent. During the period, udaan said it achieved a 30 percent decline in absolute EBITDA consumption.