Indian B2B e-commerce major Udaan is exploring the sale of a minority stake in its non-banking financial company (NBFC) arm, Hiveloop Capital Pvt. Ltd, as part of a broader strategic overhaul. The move aims to monetise assets, streamline operations, and improve financial health in the run-up to a potential public listing next year.
Strategic Restructuring and Stake Sale Talks
According to sources familiar with the matter, Udaan has initiated early-stage discussions with the advisory firm DC Advisory to manage the stake sale process. The exact size of the minority stake on offer and its potential valuation are yet to be finalised. Foreign debt investors are also reportedly evaluating an investment in the NBFC entity.
This initiative is a key component of a larger restructuring plan undertaken by Udaan's parent company. The goal is to reduce operational burn, enhance unit economics, and free up cash for expansion. The company's spokesperson declined to comment on what they termed "market speculations," while DC Advisory did not respond to queries.
Financials and NBFC Operations
Udaan Capital's portfolio is currently valued at approximately ₹500 crore. Over the past six years, its NBFC arm has facilitated lending transactions worth a staggering $1 billion. The unit, which operates the digital lending platform Indusage Techapp Pvt. Ltd, primarily provides short-tenor, unsecured loans to vendors on Udaan's platform and to external MSMEs.
As of FY24, the NBFC's net portfolio stood at ₹359 crore. Notably, the business has been pivoting away from financing only its parent's platform transactions. Off-Udaan transactions constituted 63.8% of the loan portfolio in FY24, a significant increase from 49.6% in FY22, indicating a strategic diversification of its lending base.
IPO Preparations and Broader Context
The stake sale discussion follows Udaan's recent $114 million Series G funding round in June 2025, led by existing investors M&G Investments and Lightspeed Venture Partners. This round valued the Bengaluru-based company at about $1.8 billion. The firm has been aggressively cutting costs, including workforce reductions, and claims to have reduced its annual EBITDA burn by 40% over the last three years.
Earlier this year, Udaan received NCLT approval to consolidate its tech platform, distribution, trading, and logistics under a single entity named Hiveloop E-Commerce. Its NBFC operations are also expected to be integrated into this structure to simplify the corporate framework ahead of an IPO.
Founded in 2016 by Amod Malviya, Vaibhav Gupta, and Sujeet Kumar, Udaan has raised nearly $2 billion from investors like Tencent and DST Global. It competes with players like IndiaMart and Flipkart Wholesale in India's rapidly growing B2B e-commerce space, which is projected to reach $345 billion in the next five years.
