In a significant move within India's B2B e-commerce sector, Udaan, a Bengaluru-based unicorn, has acquired retail-tech startup ShopKirana in an all-stock transaction. This strategic consolidation, announced on July 18, 2025, aims to strengthen Udaan's foothold in the domestic eB2B market as it prepares for a planned public listing.
Founded in 2015, ShopKirana, based in Indore, brings a robust retailer network and deep expertise in FMCG (Fast-Moving Consumer Goods) and HoReCa (Hotel, Restaurant, and Catering) sectors. The acquisition, valued at approximately $88.5 million in stock, integrates ShopKirana's capabilities into Udaan's operations, enhancing its supply chain and technological strengths.
This deal also marks a notable development for Udaan's investor base, with Info Edge, a key shareholder in ShopKirana with a 26.14% stake, now joining Udaan's cap table. This move follows Udaan's recent fundraising of $114 million led by M&G and Lightspeed, signaling strong investor confidence ahead of its IPO.
The combined entity is poised to improve operational efficiency and expand market reach, particularly in Staples and FMCG categories. Udaan aims to leverage ShopKirana's network to drive profitability, a critical focus as it gears up for a public offering in the coming years.
Industry experts view this acquisition as a pivotal step in the eB2B space, highlighting the growing trend of consolidation to build competitive advantages. Udaan's strategy reflects a broader push among Indian startups to scale operations and refine business models in preparation for public markets.
As Udaan continues to fortify its position, this acquisition underscores its commitment to innovation and market leadership. The integration of ShopKirana's expertise is expected to create synergies that will benefit retailers and suppliers across India's vast B2B ecosystem.
Maria Lourdes
