Bengaluru-based B2B e-commerce unicorn Udaan has reported a significant improvement in its financial health for the fiscal year ended March 31, 2025. According to recent regulatory filings, the company successfully narrowed its net loss to ₹1,055.4 crore, marking a 37% decline from the ₹1,674.1 crore loss reported in FY24.
This progress comes as Udaan continues its aggressive shift from a “growth-at-all-costs” model to one focused on unit economics and a sustainable path toward an Initial Public Offering (IPO), likely in late 2026.
Key Financial Highlights (FY25 vs FY24)
While the bottom line showed marked improvement, the company’s deliberate “tightening” of operations led to a contraction in overall scale.
| Metric | FY24 | FY25 | Change |
| Operating Revenue | ₹5,706.6 Cr | ₹4,561.4 Cr | ↓ 20% |
| Net Loss | ₹1,674.1 Cr | ₹1,055.4 Cr | ↓ 37% |
| Staff Costs | ₹643 Cr | ₹500 Cr | ↓ 22% |
| EBITDA Burn | — | — | ↓ 40% |
Strategic Realignment: Quality Over Quantity
The 20% dip in operating revenue was a conscious result of Udaan exiting non-essential and low-margin verticals. The company has moved away from segments like lifestyle, electronics, and general merchandise to double down on high-density essentials.
- Focus on Staples & FMCG: Udaan is now prioritizing groceries, FMCG, and the HoReCa (Hotel, Restaurant, and Catering) segment.
- The Cluster Model: Under “Project Iota,” the company has transitioned to a regional cluster-based operating model. This strategy targets smaller, high-density pin codes to maximize buyer penetration and logistics efficiency.
- Cost Optimization: Beyond staff reductions, Udaan halved its finance costs to ₹185 crore and reduced logistics and marketing expenses by nearly 25%.
Roadmap to IPO 2026
The FY25 results are being viewed as a critical validation of CEO Vaibhav Gupta’s strategy to build “cost as a capability.” The company has reached several milestones in the past year to prepare for the public markets:
- NCLT Approval: Udaan received approval to consolidate its multiple business units into a single integrated entity, Hiveloop Ecommerce, simplifying its corporate structure.
- Fresh Capital: In June 2025, the startup raised $114 million in a Series G round led by M&G Investments and Lightspeed, maintaining its valuation at approximately $1.8 billion.
- Profitability Targets: Management indicates that the company is on track to achieve group-level EBITDA profitability within the next 12 to 18 months.
“Our focus on efficiency and the successful execution of the Cluster Model delivered a 40% reduction in EBITDA burn. These results clearly underline our commitment to building a resilient and future-ready business.” — Vishnu Menon, SVP of Strategy at Udaan.
