Udaan acquires ShopKirana in all-stock deal

19 July, Mumbai 2025

India’s leading B2B e-commerce unicorn, Udaan has taken a significant step toward its anticipated IPO by acquiring retail-tech startup ShopKirana in an all-stock deal. This strategic acquisition is set to strengthen Udaan’s position in the FMCG (Fast-Moving Consumer Goods) and HoReCa (Hotel, Restaurant, and Catering) segments, improve its operating margins, and align with its long-term profitability goals.

The acquisition was finalized in July 2025. The deal structure involved a complete stock swap, where ShopKirana’s investors exchanged their equity for shares in Udaan’s parent company, Hiveloop Technology. Through this transaction, ShopKirana’s investors, including Info Edge, Sixth Sense Ventures, and Oman India Joint Investment Fund, acquired approximately 7 per cent to 8 per cent of Udaan’s Indian operations.

This transaction valued ShopKirana at around $88.5 million. This valuation reflects ShopKirana’s strong presence in Tier II and Tier III cities, its proprietary procurement technology, and its private-label offerings. Info Edge, a prominent investor in ShopKirana, has now become a strategic shareholder in Udaan. This addition brings not only capital but also significant governance strength and public market experience—crucial assets for Udaan as it prepares for its IPO.

Udaan plans to integrate ShopKirana’s supply chain intelligence to reduce wastage, lower delivery costs, and increase inventory turnover. The company anticipates these operational synergies will significantly reduce customer acquisition costs and enhance gross margins across its FMCG business.

This acquisition signals a maturing phase for India’s B2B commerce industry. The sector is now prioritizing profitability, customer lifetime value, and operational integration over rapid top-line growth. Udaan’s move mirrors this broader industry shift from aggressive expansion to strategic consolidation.

The deal also highlights how B2B unicorns are strategically positioning themselves for public listings. Investors are increasingly seeking platforms with strong fundamentals, diversified verticals, and clear paths to profitability. As Udaan integrates ShopKirana, the market will closely monitor signs of successful integration. If Udaan can deliver improved margins, higher retention, and sustained growth in Tier II and III cities, it will set a clear precedent for future consolidation within the sector.

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