Udaan Reports FY26 Revenue of Rs 5,100 Crore and Says It Will Exit FY27 Profitable

Udaan reported FY26 revenue of Rs 5,100 crore, up 12%, and a net loss of Rs 850 crore, and co-founder and CEO Vaibhav Gupta said the company will exit FY27 as a profitable company. Gupta gave the figures in an interview with the Financial Express.

Udaan's Shift to City Clusters

Udaan is India's largest eB2B platform, founded in 2016 and based in Bangalore, connecting kirana stores, chemists and hotels with manufacturers and wholesalers through a mobile-first marketplace with integrated credit, payments and logistics. Gupta said the company moved away from an open marketplace where anyone could sell anything, a model he described as a mistake, and around 2021-22 shifted to city-based clusters focused on density and throughput. The strategy worked first in Bengaluru and now across its operating cities, he said.

All 11 clusters, spanning around 18-20 cities, are profitable this quarter, according to Gupta, with Bengaluru and Mysuru reaching that point a quarter or two earlier. "We will exit FY27 as a profitable company, with FY28 being our first full year of profitability," he said. Udaan is targeting 25% annual growth, and Gupta said all 11 clusters have grown consistently for 16 quarters. In Bengaluru the company holds around 8% of the kirana market and is growing 25-30% annually against market growth of 7-8%, he said.

Hotel, restaurant and cafe business accounts for around 20% of revenue, rising to 27-28% in Bengaluru and about 20% in Hyderabad. Gupta said Udaan is rolling HoReCa out across all clusters this quarter and expects it to contribute a third of the business over the next couple of years. In staples, the company expects private labels to account for 70-80% of sales, and Gupta said they generate twice the margins of market brands.

Udaan's Funding and Deal Record

Udaan's total funding stands at $2.3 billion at Series G stage, with its last round dated July 14, 2026, according to akta.pro company records. The same records list a $45 million debt-funded round led by BlackRock in July 2026 and a $115 million round that month with two investors. They also show a $1.8 billion valuation, flat from a Series G round led by M&G Investments and Lightspeed in June 2025, and FY25 revenue of Rs 4,561 crore, down from Rs 10,000 crore in FY22 after an exit from non-essential verticals.

Deals Preceding the Turnaround

In September 2026, Udaan acquired Swiggy's LYNK Logistics for ₹500 crore, settling through preference equity shares that gave Swiggy a 2.8% stake, with Swiggy also investing ₹75 crore for an additional 0.4%, BusinessLine reported. That month Udaan closed a $114 million funding round led by M&G Prudential and Lightspeed at a $1.8 billion valuation, The Economic Times reported. In October 2026, Business Standard reported that Udaan expects FY26 revenue growth of 10-12% and losses to narrow by 20%, targeting full profitability by the end of 2027 and an IPO by early 2028.

Udaan's IPO Target

Company records show Udaan announced a reverse flip from Singapore to India in 2026, merging its Singapore holding entity with Hiveloop E-Commerce Private Limited as part of IPO preparation, with an IPO targeted within 9-18 months.