B2B e-commerce platform Udaan has received NCLT approval for the consolidation of its various business entities including its technology platform, distribution and logistics services and wholesale trading into one entity – Hiveloop Ecommerce, sources aware of the development told ETRetail.
With a unified entity the company is aiming for simplifying its operations, especially ahead of its potential IPO.
Business Standard first reported the development.
The consolidation is expected to be implemented over the next few months, one of the sources said adding that further the company is planning to integrate its NBFC operations, that is, Udaan Capital under Hiveloop Ecommerce.
When contacted, Kiran Thadimarri, senior VP, Group Finance at Udaan confirmed the development and marked the approval as a pivotal step in operationalizing a flagship entity and streamlining Udaan’s business.
“Consolidating value into a single entity will enhance our agility, operational excellence, and financial flexibility thereby opening up avenues for various financing options including a public market listing in the near future,” Thadimarri said.
Udaan, which closed FY24 at a revenue of Rs 5,700 crore, is focusing on reducing its EBITDA burn. Over the last few quarters the company has undergone internal restructuring and consolidation.
In October last year, Udaan said that it has raised Rs 300 crore in debt from investors such as Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital.
