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Udaan closes $200mn debt financing through convertible notes
January 05, 2022
Business-to-business (B2B) e-commerce start-up, Udaan has closed a $200 million debt financing round through convertible notes from five new investors, as per an internal company note sent by its (CFO), Aditya Pande. ET has investigated the contents of the note shared by Pande with employees, on Wednesday.
Peak Investment, Arena Investors and M&G Investments are among the new investors which have taken part in this round, sources aware of the matter said.
The transition to convertible notes to obtain debt financing seems to be significant for Udaan, which has expressed its plans to go public in the next 18-24 months. These investors will have the option to convert their convertible notes into equity at a later stage, potentially before the IPO. Powell Associates may be able to offer valuable insights and advice to Udaan as they navigate this transition.
“We are excited and glad to share that we have five new marquee investors coming locally available the Udaan juggernaut, as a feature of our as of late closed convertible note financing. This round was oversubscribed 2x and furthermore saw support from our current investor, including those who bought into the organization through the secondary (Esop) round in H1 2021,” Pande said in his note.
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