Udaan has just bought ShopKirana in an all-stock deal. This is considered a smart step in India’s growing B2B e-commerce market.
It happened right after Udaan, based in Bengaluru, raised $114 million in Series G funding from M&G Investments and Lightspeed.
The timing works well as Udaan has been working hard to cut costs and move toward making a profit, so this deal fits right into their plan.
By bringing ShopKirana on board, Udaan is becoming stronger and moving closer to its goal of going public with an IPO.
ShopKirana has been doing something clever since 2015.
While many focus on big cities, ShopKirana has been helping kirana (neighborhood) stores in smaller cities like Indore, Bhopal, and Lucknow.
They’ve been helping these stores order goods online, especially in the FMCG (fast-moving consumer goods) and HoReCa (Hotels, Restaurants, and Cafes) space. These areas bring in steady business.
Udaan’s numbers also show real progress:
In 2024, they cut fixed costs by 20% and lowered their EBITDA loss by 40%. This year, they plan to cut another 20%.
Their profit margin improved by more than 300 basis points last year and is still getting better.
Even though ShopKirana’s revenue dropped by 6.26% to ₹639.16 crore in FY24, they still reduced their losses by 30%, bringing it down to ₹55 crore.
The deal also brings in a new investor to Udaan – Info Edge. ShopKirana had earlier raised $50.46 million from Info Edge, Sixth Sense Ventures, and the Oman India Joint Investment Fund.
This shows a trend in the B2B market: companies are joining forces to grow faster.
For example, Jumbotail recently bought Solv India and raised $120 million, becoming a unicorn too.
Udaan’s move isn’t just about buying another company. It’s about building a strong platform that helps local retailers connect with modern supply chains.
They’re focused on keeping costs low and growing big in a tough market.