Udaan is targeting an IPO by the end of 2027 or the first quarter of 2028. A three-year turnaround is now showing in its numbers. Chief executive Vaibhav Gupta told Business Standard that the firm expects FY26 revenue to grow 10% to 12%. Losses should narrow by about 20%.
Gupta also expects Udaan to turn fully profitable by the end of 2027. The company has been promising a listing for five years.
The Reset: From 80 Cities To 16 Clusters
Three years ago, Udaan did something founders rarely do. It made itself smaller on purpose.
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The company once sold everything from food staples and groceries to fast moving consumer goods. Its customers were shopkeepers in about 80 Indian cities. Gupta pulled it back to roughly 16 clusters and a tighter range of groceries and staples.
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Revenue fell by more than half from its peak, and investors marked down their stakes. The bet is now starting to pay off.
FY25 Numbers And The $160 Million Recapitalisation
FY25 carried the cost of the reset. Revenue declined 20% to Rs 4,561 crore as Udaan exited select non-essential categories.
Net loss narrowed 37% to Rs 1,055 crore. That was the third straight year of narrowing losses, after Rs 2,075 crore in FY23 and Rs 1,674.1 crore in FY24.
A $160 million recapitalisation announced in July 2026 supported the turnaround. It combined fresh equity, new debt and debt-to-equity conversion, and followed a $114 million Series G in 2025.
Between Q4 CY23 and Q1 CY26, revenue grew at roughly 25% CAGR. Contribution margin rose nearly 500 basis points, and EBITDA burn dropped by about 70%.
Where Growth Will Come From
Bengaluru and several other major clusters are already EBITDA-profitable. Gupta says the company is now profitable in every city it operates in.
Growth is expected to come largely from existing retailers. Gupta wants Udaan to win more of their procurement spend rather than overinvest in new customer acquisition or new markets.
Private labels now account for 15% to 25% of staples sales across operating cities. Its horeca360 business serves hotels, restaurants, caterers and institutional buyers.
In the Bengaluru cluster, private labels and the HoReCa business together contribute about half of Udaan’s revenue.
The LYNK Deal And What Comes Next
Udaan recently acquired Swiggy-owned LYNK Logistics for Rs 500 crore in an all-share deal. Swiggy received about 2.8% of Udaan and invested another Rs 75 crore.
Category and city leaders are now judged on contribution margin, retention, order frequency and basket size. Fulfilment cost counts as well, not just topline growth.
Udaan was co-founded in 2016 by Gupta with Amod Malviya and Sujeet Kumar, both former senior Flipkart executives. Gupta is an IIT Delhi alumnus who spent five years at Flipkart.
The company holds a high single digit market share in the cities it serves. Gupta says Udaan can keep growing at 25% to 30% for four or five years in those markets. Another 1,000 Indian cities are the longer-term opportunity.