Udaan, a prominent player in B2B e-commerce, has welcomed Nillambaran Ganenthiran, former Instacart executive and investor in the quick commerce startup Zepto, to its board of directors at parent company Trustroot Internet.
Confirmation of Board Role
Official records indicate that Ganenthiran formally assumed his board position on August 17. While Udaan has verified this appointment, specifics remain undisclosed.
Representation by Lightspeed
Ganenthiran’s board presence is anticipated to symbolize Lightspeed, the principal shareholder in Udaan. Presently, Lightspeed India holds two board seats, with Bejul Somaia, a partner at Lightspeed, being the other nominee.
Active Involvement Expected
Insiders anticipate that Ganenthiran will proactively contribute to pivotal strategic decisions as a vital member of the board.
Context: Funding Endeavors and Financial Resilience
Udaan is purportedly engaged in discussions to secure an internal funding round of $200-250 million. This round may witness participation from Lightspeed and other incumbent investors. However, economic challenges have generated concerns about a potential valuation reduction for Udaan.
Financial Performance and Transformation Efforts
Aligned with numerous Indian unicorns, Udaan has confronted notable losses. In the fiscal year 2021-22, the company recorded a loss of INR 3,075 crore, marking a 1.2X escalation from the previous year. Despite this, its operational revenue surged by 1.7X year-on-year to INR 9,943.8 crore in FY22. Responding to these challenges, Udaan has executed cost-saving initiatives, encompassing workforce reduction and streamlined operations.
Udaan’s Background and Outreach
Founded in 2016 by Sujeet Kumar, Vaibhav Gupta, and Amod Malviya, Udaan operates across 1,000 Indian cities, offering an extensive array of products. It has cultivated a network comprising 3 million retailers and over 30,000 sellers across the nation. Additionally, the company has garnered approximately $1.6 billion in funding through diverse rounds, with a recent debt round facilitated by Temasek-backed EvolutionX Debt Capital in November.
Envisioning Future Progress
Ganenthiran’s inclusion is poised to bolster Udaan’s ongoing endeavours to navigate the intricate economic landscape, optimize its functioning, and secure funding to sustain its growth trajectory.
