Lightspeed-backed Indian commerce Udaan raises $120 million • TechCrunch

India’s Udaan has raised $120 million in convertible notes and debt led by existing shareholders and bondholders, a top executive told employees in an email Thursday seen by TechCrunch, as the business-to-business e-commerce startup readies being public in 12-18 months.

The new financing brings the startup’s overall funding in convertible notes and debt in the last quarters to over $350 million, Udaan’s chief financial officer Aditya Pande wrote in an email Thursday. These financing rounds are “one of the largest structured instrument fund raises in the country,” he said.

The Bengaluru-headquartered startup has improved its unit economics by “~1,000bps with equally strong improvements in both gross margins and operating cost,” Pande wrote. “The journey of right business design & unit economics has translated into a 60%+ reduction in burn. Continued focus on customer-first thinking & initiatives on strengthening our value proposition for them have resulted in monthly buyer repeat rates increasing by 500+bps in the last 2 quarters,” he added.

An Udaan spokesperson confirmed the email but declined to comment.

“Despite the funding related challenges being experienced by the larger start-up ecosystem, this fund raise reflects the confidence of investors in our business model and their endorsement of the journey to unit economics, driven by great progress in evolution of our business model and cost efficiency, that we initiated last year,” he wrote.

“These steps have not only helped us achieve positive unit economics last quarter, but also improved efficiency in the system, with huge cost benefits, which is key to building a sustainable business, and being public market ready in 12-18 months.”

(More to follow)