Udaan posts Rs 5,134 Cr gross revenue and Rs 852 Cr loss in FY26

After a 20% decline in FY25, the B2B ecommerce platform Udaan returned to revenue growth, posting 12.6% year-on-year growth in FY26. The Bengaluru-based company also narrowed its losses by 19% to Rs 852 crore.

Udaan’s gross revenue (GMV) grew to Rs 5,134 crore in FY26 from Rs 4,561 crore in FY25, according to the company’s consolidated financial statements filed by its group company, Trustroot Internet in Singapore.

Founded in 2016 by former Flipkart executives Vaibhav Gupta, Sujeet Kumar and Amod Malviya, Udaan connects brands and wholesalers with retailers through its B2B ecommerce platform, with revenue from goods sales, logistics, platform fees, credit services and advertising.

Udaan’s gross merchandise value (GMV) stood at around Rs 10,000 crore in FY22. The decline since then reflects its exit from non-core categories such as lifestyle and general merchandise, as the company shifted its focus to groceries and essential goods.

On the cost side, material expenses rose 11.3% to Rs 4,859 crore in FY26 from Rs 4,367 crore in the previous fiscal. Finance costs increased 33.5% to Rs 247 crore, while logistics expenses grew 16.7% to Rs 182 crore.

Employee benefit expenses declined to Rs 347.5 crore in FY26 from Rs 500 crore in FY25, largely due to a reduction in ESOP expenses from Rs 280 crore to Rs 140 crore.

Decent revenue growth and lower ESOP costs helped Udaan narrow its net loss by 19.2% to Rs 852 crore in FY26 from Rs 1,055 crore in FY25. This extended its streak of annual loss reduction to four years, from Rs 2,075 crore in FY23 and Rs 1,674.1 crore in FY24.

In September 2026, Udaan agreed to acquire Swiggy’s retail distribution business Lynk Logistics for Rs 500 crore to expand its reach across key markets. Swiggy will receive an approximately 2.8% stake in Udaan through preference shares and invest another Rs 75 crore for a 0.4% stake. The deal will add Lynk’s brand partnerships and retail network to Udaan’s distribution business.

In March this year, Udaan’s parent Trustroot acquired Info Edge’s entire 26.14% stake in Shopkirana for $32.97 million. In exchange, Info Edge received preference shares representing a 2.02% stake in Trustroot and committed an additional $1.72 million, taking its shareholding in Trustroot to 2.13% on a fully diluted basis.

Udaan has also announced a structured financing transaction worth approximately $160 million, as the company looks to strengthen its balance sheet and simplify its capital structure ahead of its long term public market plans.

The company has also been preparing for a public listing and is reportedly expected to achieve profitability by the end of 2027 or the first quarter of 2028 ahead of its planned IPO.