B2B ecommerce unicorn Udaan’s operating revenue grew 12.6% to ₹5,134 Cr in the financial year ended March 2026 (FY26) from ₹4,561 Cr in FY25.
The startup’s net loss narrowed 19.4% to ₹851.5 Cr from ₹1,055.4 Cr in the previous fiscal, according to its financial statements.
The recovery follows an uneven revenue trajectory — a 40% decline in FY23, marginal growth of 1.7% in FY24, and a 20% fall in FY25. During this period, Udaan also closed a $114 Mn Series G funding round in June 2025 at a 59% valuation dip.
In a LinkedIn post, Udaan’s senior vice president Vishnu Menon attributed the improvement to the startup’s focus on profitable growth, operational efficiency, and tighter execution across its markets.
Over the 10 quarters from Q4 CY23 to Q1 CY26, the company’s revenue grew at a CAGR of around 25%, while its contribution margin improved by nearly 500 basis points and EBITDA burn declined by around 70%, Menon said.
Menon attributed this progress to its cluster-led operating model, which focuses on accountability for performance at the city and category levels, deeper operations in existing markets, and tighter cost controls.
However, Udaan’s financial statements flagged material uncertainty that could cast significant doubt on the group’s ability to continue as a going concern.
At the end of FY26, the group’s current liabilities exceeded its current assets by ₹1,391 Cr, while its total liabilities exceeded its total assets by ₹790.9 Cr.
The startup said it received additional funding after the financial year ended and expects revenue growth and cost-cutting measures to improve operating cash flows.
Founded in 2016 by former Flipkart executives Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, Udaan operates a B2B digital marketplace connecting manufacturers, brands, wholesalers, and retailers, including kirana stores, chemists, and general merchants, through a mobile app.
Udaan’s Bumpy FY27
Despite the improvement in its FY26 financial performance, Udaan faced fresh challenges in the ongoing fiscal, with creditors initiating insolvency proceedings against its offshore parent over a bond default.
Creditors, including Tor Investment Management, Samena Capital, and Arena Investors, initiated proceedings in the Singapore High Court after Udaan’s offshore holding entity, Trustroot Internet Pvt Ltd, defaulted on $170 Mn worth of compulsorily convertible notes due on June 30.
Confirming the development at the time, Udaan told Inc42 that the proceedings concerned its offshore holding company and would not have any material impact on its operations in India.
Later in July, Udaan announced a proposed $160 Mn financing transaction, comprising fresh equity, new debt, and conversion of existing debt into equity.
Last month, Udaan announced an agreement to acquire Swiggy’s retail distribution business, LYNK, in an all-share transaction valuing the business at ₹500 Cr. Swiggy also announced plans to invest another ₹75 Cr in Udaan’s parent entity.
Udaan expects the acquisition to expand its retail distribution capabilities and market reach, while improving efficiency across the combined network.
Udaan Bets On Private Labels, Institutional Sales
Udaan is also looking to improve its revenue mix and margins through private labels and its institutional procurement business, horeca360.
According to Menon, private labels now account for 15-25% of staples sales across Udaan’s operating cities. He expects the segment to improve margins and capture a larger share of customers’ spending using its existing sourcing and distribution infrastructure.
Meanwhile, horeca360, which caters to hotels, restaurants, caterers, and institutional buyers, expanded into Hyderabad and Chennai during FY26. The business aims to deepen customer relationships and improve utilisation of Udaan’s supply chain network.
Menon said it would continue to focus on improving revenue quality, strengthening execution at the city level, and increasing operating efficiency as it works towards sustained profitability and a public listing.
The post Udaan’s FY26 Revenue Rises 13% To ₹5,134 Cr, Loss Narrows To ₹852 Cr appeared first on Inc42 Media.