Udaan, a B2B e-commerce company based in Bengaluru, has bought retail-tech startup ShopKirana in an all-stock deal. This move is a key step in bringing companies together in India’s eB2B (business-to-business) market.
This deal comes soon after Udaan raised $114 million in its Series G funding round, led by M&G Investments and Lightspeed.
According to Udaan, the acquisition will help improve its operations, expand its reach in important markets, and support its goal of becoming profitable and preparing for an IPO.
ShopKirana was founded in 2015 and works to digitize the way kirana (small retail) stores buy products, especially in smaller cities like Indore, Bhopal, Lucknow, Agra, Surat, and Meerut.
By partnering with Udaan, ShopKirana will help the company expand its presence in high-demand areas, such as FMCG (fast-moving consumer goods) and HoReCa (hotels, restaurants, and catering).
Udaan said the combined entity will drive improved operating leverage and supply chain efficiency, while delivering greater value to retailers and brands.
The acquisition also makes Info Edge a shareholder in Udaan. According to TheKredible, ShopKirana has raised a total of $50.46 million from investors such as Info Edge, Sixth Sense Ventures, and the Oman India Joint Investment Fund.
According to Udaan, the merger is aimed at building a “preferred platform for kiranas and brands,” with a focus on cost leadership and scale-driven profitability. Udaan has been on a cost optimization drive over the past two years, reducing fixed costs by 20% and cutting EBITDA burn by 40% in calendar year 2024, followed by another 20% reduction in 2025 so far. The company also claims that its contribution margin improved by over 300 basis points last year and is up by another 100+ bps year-to-date.
For the financial year ending March 2024, ShopKirana’s gross revenue dropped by 6.26%, going from ₹681.81 crore in FY23 to ₹639.16 crore in FY24. However, the company was able to cut its losses by 30%, bringing them down to ₹55 crore in FY24. The results for FY25 are not yet available.
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