Udaan Acquires ShopKirana in Strategic All-Stock Deal

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Udaan, the Bengaluru-based B2B e-commerce unicorn, has acquired retail-tech startup ShopKirana in an all-stock transaction, marking a strategic consolidation in India’s eB2B segment.

The move comes shortly after Udaan raised $114 million in its Series G round led by M&G Investments and Lightspeed. The deal is expected to strengthen Udaan’s operational efficiency, deepen its presence in key markets, and boost its path to profitability and IPO, the company said in a press release.

Founded in 2015, ShopKirana focuses on digitizing procurement for kirana stores across tier II and III cities such as Indore, Bhopal, Lucknow, Agra, Surat, and Meerut. Its integration with Udaan will expand the latter’s reach in high-frequency categories like FMCG and HoReCa.

Udaan said the combined entity will drive improved operating leverage and supply chain efficiency, while delivering greater value to retailers and brands.

The acquisition also brings Info Edge on board as a shareholder in Udaan. According to TheKredible, ShopKirana has raised a total of $50.46 million in funding till date from investors including Info Edge, Sixth Sense Ventures, Oman India Joint Investment fund.

According to Udaan, the merger is aimed at building a “preferred platform for kiranas and brands,” with a focus on cost leadership and scale-driven profitability. Udaan has been on a cost optimization drive over the past two years, reducing fixed costs by 20% and cutting EBITDA burn by 40% in CY2024, followed by another 20% reduction in 2025 so far. The company also claims that its contribution margin improved by over 300 basis points last year and is up by another 100+ bps year-to-date.

For the fiscal year ended in March 2024, Shopkirana’s gross revenue decreased 6.26% to Rs 639.16 crore in FY24 from Rs 681.81 crore in FY23. However, the firm managed to reduce its losses by 30% to Rs 55 crore in FY24. Its FY25 results has yet to come.

This is the second major consolidation in the B2B e-commerce space. Recently, Jumbotail acquired Solv India for an undisclosed amount. Soon after the deal, Jumbotail also raised $120 million in its Series D round and became another unicorn in the space.

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