Since inception, Udaan is estimated to have accumulated losses of around ₹13,000 crore while investing aggressively to build its nationwide B2B ecommerce platform.
Business-to-business (B2B) e-commerce unicorn Udaan is set to sign a comprehensive recapitalisation agreement this week or early next week after reaching a broad consensus on the terms with all key stakeholders, including the company, its major existing shareholders, a majority of bondholders and a new investor, people familiar with the matter told businessline.The agreement marks a crucial step in Udaan’s efforts to shore up its finances, simplify its capital structure and pave the way for its long-term public market ambitions.“The detailed recapitalisation terms have now been agreed upon by all the key stakeholders. The definitive agreement is expected to be signed this week or early next week,” one person aware of the discussions said.According to sources, the transaction is expected to significantly strengthen the company’s balance sheet while resolving complexities arising from its existing debt structure.“The transaction will materially improve the company’s financial position, simplify the capital structure and support its longer-term IPO ambitions,” another person said.The development comes even as some of Udaan’s global creditors have initiated insolvency proceedings against Trustroot Internet Pte Ltd, the company’s Singapore-based holding entity, after the company defaulted on $170 million of compulsory convertible notes (CCNs) that matured on June 30.Following unsuccessful negotiations on restructuring the debt, creditors appointed Alvarez & Marsal as liquidator and filed a winding-up petition before the Singapore High Court last week, sources said.The recapitalisation agreement is expected to address these liabilities as part of a broader restructuring exercise involving both equity and debt investors.The episode highlights the increasing pressure on India’s late-stage startup ecosystem, where several companies that raised structured debt during the funding boom are now renegotiating obligations amid delayed IPO timelines and tighter private capital markets.Since inception, Udaan is estimated to have accumulated losses of around ₹13,000 crore while investing aggressively to build its nationwide B2B ecommerce platform.The company’s creditors include Tor Investment Management, Samena Capital, Arena Investors, Catalyst Funds, Evolution, a unit of Japanese investment bank Nomura and a credit fund affiliated with Standard Chartered Bank, among others.Founded in 2016 by former Flipkart executives Vaibhav Gupta, Sujeet Kumar and Amod Malviya, Bengaluru-based Udaan counts Lightspeed Venture Partners, DST Global and Tencent among its prominent backers.The impending signing of the recapitalisation agreement is expected to provide clarity to investors and creditors alike, potentially drawing a line under months of restructuring negotiations and allowing the company to refocus on improving operations and preparing for a future public listing.Published on July 8, 2026
