Udaan, India’s largest business-to-business (B2B) e-commerce company, has received approval from the National Company Law Tribunal (NCLT) for its internal corporate restructuring plan, according to sources.y consolidating into a single entity, the restructuring will enhance Udaan's agility and pave the way for various financing options, including the ability to pursue an initial public offering (IPO) in India by 2026, according to people familiar with the matter.
“The company is preparing for an IPO by the end of 2025 or early next year,” said a person.
The approved restructuring consolidates Udaan’s businesses across various entities into Hiveloop Ecommerce Pvt Ltd, setting the stage for operationalising a flagship entity.
The scheme strengthens Udaan's operating model by unifying its business into an integrated structure.
This would significantly simplify operations and create efficiencies.
The restructuring plan will help align Udaan’s core capabilities, bringing an advanced technology platform, extensive distribution network, wholesale trading, and logistics services under a single umbrella.
Udaan competes with players such as Amazon, Flipkart, and Reliance’s JioMart in the B2B e-commerce space.
This segment is expected to surpass sales of $125 billion by 2027, expanding at a compound annual growth rate of 45 per cent, according to a report by Avendus Capital.
Udaan has raised a total funding of $1.88 billion from investors such as M&G Plc, Lightspeed Venture Partners, and DST Global, and it has a valuation of about $1.8 billion, according to data platform Tracxn.
The demerger scheme is expected to be implemented over the next few months in compliance with regulatory directions.
Furthermore, the group plans to integrate its non-banking financial company (NBFC) operations into this structure in the near future.
This move would support its position as a comprehensive solution provider for Bharat’s kirana ecosystem.
When contacted, Kiran Thadimarri, senior vice president, Group Finance, Udaan, said, “This is a significant milestone in Udaan’s journey of transforming Bharat’s kirana ecosystem.
"The NCLT approval for our internal corporate restructuring is a pivotal step in operationalising a flagship entity, streamlining our business into a unified structure.
"By consolidating value into a single entity, it will enhance our agility, operational excellence, and financial flexibility, opening up avenues for various financing options, including the potential for an IPO in India in the near future.”
Thadimarri added that Udaan’s strong financial performance for FY23-24 underscores the success of the strategic decisions made over the last 8-9 quarters.
The firm’s revenue reached Rs 5,700 crore for FY23-24. It reduced EBITDA (earnings before interest, taxes, depreciation, and amortisation) burn by 36 per cent year-on-year to Rs 923 crore.
There was also a 35 per cent decline in SG&A (selling, general, and administrative) expenses, reflecting the resilience of the company’s business model and the operational efficiencies driven by disciplined execution.
“The progress we have achieved year-to-date in CY24—60 per cent revenue growth, a 50 per cent increase in daily transacting buyers, and margin improvements of 200 to 300 basis points—further solidifies our path to profitability,” said Thadimarri.
“As we continue to deepen market penetration, increase wallet share, and enhance repeat buyer metrics, we remain committed to delivering sustainable growth and creating value for all stakeholders.
"This restructuring positions Udaan to unlock its full potential and accelerate our mission of empowering small businesses across Bharat.”
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