B2B e-commerce firm Udaan reported a sharp reduction in losses for the financial year ended March 31, 2025, even as its revenue declined following an exit from select business verticals, according to its latest financial disclosures.
For FY25, Udaan’s consolidated revenue stood at ₹4,561.4 crore, down from ₹5,706.6 crore in FY24, marking a year-on-year contraction of nearly 20%. The decline in topline reflects the company’s portfolio rationalisation efforts as it scaled back operations in non-core segments.
Despite the revenue drop, the company made significant progress on profitability. Udaan’s consolidated loss narrowed by nearly 37% to ₹1,055.4 crore in FY25, compared with a loss of ₹1,674.1 crore in the previous year. This translates into an improvement of over ₹618 crore year-on-year.
The reduction in losses was supported by lower expenses across multiple cost heads, including purchases of traded goods, employee costs, finance charges, and other operating expenses. The company has been tightening costs while reworking its operating structure to improve efficiency.
Commenting on the performance, Vishnu Menon, senior vice president–strategy at Udaan, said FY25 marked an important step in the company’s journey towards sustainable growth. He noted that the transition to a regional cluster-based operating model over the past six quarters helped reduce core EBITDA burn by around 40%, even as the company exited select verticals as part of a broader portfolio realignment.
Udaan has been restructuring its business to focus on fewer, stronger regional clusters, a move it says has improved unit economics and operational discipline. The company believes this model has strengthened its operating foundation and positioned it for more resilient growth.
In terms of fundraising, Udaan raised $114 million in Series G equity funding in June last year from M&G Investments and Lightspeed Venture Partners, providing it with additional capital to support its restructuring and long-term strategy.
