On July 18, 2025, Bengaluru-based B2B platform Udaan announced an all-stock acquisition of retail-tech startup ShopKirana for $88.5 million, marking its full takeover of the company. The deal brings Info Edge on board as a new investor in Udaan, following its recently closed $114 million Series G funding round
💡 Why ShopKirana?
- Kirana-Focused Reach: ShopKirana serves over 50,000 kirana stores across tier-II and tier-III cities like Indore, Lucknow, Agra, and Surat, giving Udaan deeper penetration into these markets
- FMCG Expertise & Private Label: The startup’s proficiency in FMCG distribution and its private label “Kisan Kirana” strengthens Udaan’s capabilities in high-frequency goods The Economic Times.
- Complementary Operations: ShopKirana’s efficient supply chain and cost-driven team align with Udaan’s focus on profitability and scale
📈 Impact on Udaan’s Business
| Strategic Focus | Expected Benefits |
|---|---|
| Enhanced FMCG Play | Combines tech and supply chain to scale frequent purchases and boost margins |
| Network Expansion | Broader access to kirana stores in untapped regions |
| Improved Unit Economics | Shared infrastructure and credit capabilities aim to lower cost of servicing and increase profitability |
| Path to IPO | Acquisition aligns with growth and margin goals, strengthening Udaan’s position before public listing |
🤝 Shareholders & Deal Structure
- All-Stock Deal: Udaan paid $88.5M entirely with shares, acquiring full ownership of ShopKirana
- Info Edge Entry: Transferred its 26.14% stake in ShopKirana for a ~1.5% stake in Udaan, bringing added funding firepower
- Founders & Investors: ShopKirana’s founders and backers (like Oman India Joint Investment Fund & Sixth Sense Ventures) now hold a combined 5–6% stake in Udaan
📊 Context Within Industry
- The acquisition follows broader consolidation in India’s B2B commerce space, as platforms like Jumbotail pursue similar moves
- Udaan previously raised $114M from investors like M&G and Lightspeed, signaling strong backing for its growth trajectory
- ShopKirana’s FY25 revenue declined to ₹471 crore from ₹643 crore in FY24, reflecting focused but lean operations in smaller towns The Economic Times.
🔮 What’s Next for Udaan
- Integration & Scale: Udaan will merge ShopKirana’s team and platform to expand its kirana retailer base and accelerate private-label offerings
- Profitability Focus: With Udaan having reduced fixed costs by 20% and improving EBITDA burn by 40% in 2024, this acquisition is expected to further enhance margins
- IPO Preparation: The deal strengthens Udaan’s unit economics and reach—key factors as it prepares for an eventual public listing.
