B2B e-commerce platform, Udaan has raised funds from Temasek and DBS-backed EvolutionX, the debt financing platform said in a press release. As per sources, the amount raised is approximately $ 35-40 million.
Vaibhav Gupta, Co-founder, and CEO, Udaan said, “We are excited to join hands with Rahul and his team at EvolutionX as long-term partners on this growth journey to change and organize the massive $1 trillion+ trade market of the country.”
With this, the total funds raised by Udaan in the last four quarters have reached $ 400 million. Earlier this month, the B2B e-tailer had raised $120 million in convertible notes and debt, led by existing shareholders and bondholders. In January this year, the company raised $200 million via convertible notes. In April, Microsoft Corporation joined Udaan’s debt financing round.
This investment by EvolutionX alongside Udaan’s recent capital raise will help the company improve its financial strength and drive its operational efficiencies with a focus on achieving profitable growth.
“The efficiency enhancement and structural cost-optimization initiatives that we undertook last year have already started showing results. Post achieving the milestone of positive unit economics in the previous quarter, we have witnessed robust growth in business during the last two consecutive quarters,” commented Gupta.
He added that the company will continue to invest in technology to enhance customer experience and deploy capital in areas that will drive its future growth and profitability.
Recently, Udaan laid off 300-350 of its employees, who were on regular payroll. The company reportedly also sacked a large number of its contract workforce, making the total layoff count to over 1,000 employees.
Convergent Finance LLP and Samara Capital have jointly declared the finalization of definitive documents for acquiring a 51.8 percent stake in Agro Tech Foods Limited (ATFL) from a subsidiary of Conagra Brands, Inc. ATFL, a listed company on the Bombay Stock Exchange and the National Stock Exchange, will undergo a mandatory open offer for an additional 26.0 percent of outstanding shares due to this acquisition. The deal is pending customary regulatory approvals and is anticipated to be completed in due course.
Conagra has been a controlling shareholder of ATFL since 2011, and during its tenure, ATFL expanded its food portfolio, featuring renowned brands like ACT II popcorn and Sundrop edible oils. Both brands are leaders in their categories, catering to both in-home and out-of-home consumption. ATFL will retain the license for the ACT II brand from Conagra for use in India.
Harsha Raghavan, Managing Partner at Convergent Finance said, “Agro Tech Foods’ category-defining brands have been beloved household names for the past three decades, thanks to the company’s relentless focus on quality, innovation, and customer delight. As India’s rapidly-growing consumer class expands and discretionary income levels continue to rise, we will expand ATFL’s distribution reach and product range, thereby transforming it into the country’s leading packaged and snack food platform.”
Manish Mehta, Managing Director and Co-Chief Investment Officer at Samara Capital said, “We are delighted to lead the acquisition of a majority stake in ATFL in partnership with Convergent. The company’s brands have high recall value with India’s consumers, and we aim to complement this hard-earned recognition with our knowledge of India’s food and consumer sectors to increase ATFL’s presence in fast-growing, high-margin categories. We intend to create a large and unique branded food platform in the country with this acquisition.”
Convergent Finance LLP, known for its investment management and advisory role, follows a value investing approach, emphasizing fair valuations through negotiated transactions. Samara Capital, founded in 2007, is a mid-market private equity firm in India with a focus on creating long-term value in partnership with entrepreneurs. Consumer and Retail form a significant focus area for Samara.
Conagra Brands, Inc, headquartered in Chicago, is a leading North American branded food company with a portfolio of iconic brands, including ACT II, Birds Eye, Duncan Hines, Healthy Choice, and Marie Callender’s, among others. The company is driven by a commitment to innovation and evolving to meet changing food preferences.
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