Udaan In Fresh Crisis, Mega Deal Slump In H1 & More

Udaan’s Insolvency Crisis

Udaan has run into a fresh crisis. Overseas creditors have initiated insolvency proceedings against the B2B ecommerce unicorn over a $170 Mn bond default. As it fights downrounds, mounting losses and a thinning order book, can Udaan keep its listing story alive?

The Debt Pressure: The trouble began last month after Udaan’s offshore holding company, Trustroot Internet, missed repayment on convertible notes due on June 30. The lenders then moved the Singapore HC. This came after weeks of failed debt restructuring talks, which saw the lenders pressing the unicorn for a clearer upfront payout before agreeing to extend repayment.

As a result, several major domestic banking partners withdrew working capital lines to Udaan ahead of the court filings.

The Valuation Trap: The legal escalation is tethered to Udaan’s deteriorating corporate health. The slowdown in the B2B sector and the latest down round dragged its valuation below $1 Bn, a staggering 69% collapse from its peak $3.2 Bn valuation in 2021. Furthermore, its revenue plunged 20% YoY to ₹4,561 Cr, while operational losses stood at a massive ₹1,055 Cr. 

The Hunt For Lifeline: With the clock ticking, the unicorn is now scrambling for financial rescue. It is currently working with Goldman Sachs to raise up to $200 Mn equity funding, while simultaneously negotiating a $40 Mn credit facility from BlackRock by offering pledged shares. However, it has been struggling to attract investor interest for the equity fundraise. 

A Tougher Reset: Amid the troubles, Udaan is trying to allay user’s concerns by saying that the insolvency proceedings relate only to offshore restructuring discussions and will not affect day-to-day operations. The unicorn added that it continues to serve customers across commerce and supply chain financing.

While the jury is out on whether the troubled B2B ecommerce giant can chart a turnaround, why are lenders circling around Udaan? Let’s find out…

From The Editor’s Desk

The H1 Mega Deal Slump 

• Only five startups managed to raise rounds above $100 Mn in H1 2026. Overall, late-stage funding dropped 29% YoY to $2.2 Bn during the period, deal count crashed 55% YoY to five and the median ticket size shrank sharply to $10 Mn.
• The slowdown was partly cyclic as a lot of late-stage capital deployed during the 2021 boom is now reaching the end of its holding period. As such, cautious investors are increasingly focused on exits, IPOs and M&A rather than fresh mega rounds.
• Looking ahead, investors expect the biggest mega cheques to flow into deeptech, manufacturing, defence tech, AI infrastructure and spacetech, which require heavy capital and fit India’s long-term industrial ambitions.

ShareChat Eyes FY28 IPO

• The social media giant is looking to raise up to $400 Mn via its IPO, which could happen over the next five quarters. This comes as the startup claims to have achieved operational profitability in Q1 FY27 and crossed ₹1,000 Cr in revenues in FY26.
• Founded in 2015, ShareChat’s parent Mohalla Tech operates short video platform Moj and subscription-based microdrama app QuickTV. Having raised over $1.2 Bn to date, the platform boasts a combined 65 Mn monthly microdrama viewers.
• The proposed IPO marks a turnaround for ShareChat, which has spent the past few years restructuring its business. During this period, it carried out multiple rounds of layoffs, slashed costs and exited unviable product bets to improve unit economics.

IPO-Bound Ninjacart Bags $6 Mn

• The B2B agritech soonicorn has raised ₹57 Cr in the first tranche of a larger round led by existing backers Accel, Tiger Global and Nandan Nilkeani. Without disclosing the targeted size of the round, it expects more investors to double down on the startup.
• As it begins preparing for its planned IPO within the next two years, the startup claimed that it has achieved EBITDA profitability and clocked a 3X growth in its core business over the past year. 
• Founded in 2015, Ninjacart operates a full-stack supply chain for fresh produce and positions itself as a strategic vendor for quick commerce platforms. It claims to move over 1,500+ tonnes of fresh produce a day between more than 40 cities across India.

The Swara Windfall For FirstCry

• FirstCry-owned contract manufacturer Swara Baby Products has filed its DRHP with SEBI for a ₹1,000 Cr IPO, which will comprise a fresh issue of shares worth up to ₹500 Cr and an OFS of up to ₹500 Cr. 
• BrainBees, which operates the listed omnichannel kidswear brand, owns 76.6% stake in Swara and plans to sell shares worth up to ₹300 Cr through the OFS. Post listing, the manufacturer will continue to remain a subsidiary of Brainbees. 
• Founded in 2018, Swara makes baby and adult diapers, sanitary napkins and panty liners. It reported a net profit of ₹95.6 Cr in FY26, up 18.5% YoY, against an operating revenue of ₹1,163 Cr, up 23.4% YoY.

No Entry For Blinkit In Meghalaya

• The Khasi Hills Autonomous District Council has rejected the quick commerce giant’s bid to secure a trading licence to operate within the state. The council observed that Blinkit’s model could threaten the livelihoods of 4,000 stores in Shillong alone.
• The council also noted that it had previously refused licences to similar app-based delivery platforms, including Swiggy Instamart, citing concerns over their impact on neighbourhood retailers. 
• The council’s concerns reflect broader regulatory scrutiny surrounding the sector. Last year, a distributors federation filed an antitrust complaint with the CCI against quick commerce giants alleging predatory pricing, deep discounting and other unfair practices.

Inc42 Markets

Inc42 Startup Spotlight

How Beijan Is Retrofitting Indian Defence With AI

India’s battlefield hardware was built for the manual era, but modern threats depend on software, drones and autonomous systems. This has created a gap between legacy defence equipment and today’s operational needs. Beijan is working to close this gap.

Modernising Legacy Systems: Founded in 2025, Beijan builds hardware and software modules that help defence systems digitise their environment, analyse data and act with precision. It aims to upgrade artillery guns, drones, and ground stations without requiring a full hardware replacement.

Plug & Play Autonomy: At the centre of its offering is BANM, a plug-and-play circuit board that attaches to drones and adds edge compute and GPS-denied navigation capabilities. The startup has also developed an autonomous artillery positioning system that combines ballistics and RTK/IMU positioning. This replaces manual adjustments with software-led precision, and reduces the dependence on humans for repetitive tasks.

Full-Stack Control: Beijan’s autonomous artillery targeting system goes further by replacing dial sights, hand-cranking, and legacy firing tables with software-driven fire control. With this, the startup’s broader ambition is to make defence hardware more precise, responsive and autonomous across categories.

As the Indian defence tech market stares at a $19 Bn opportunity by 2030 on the back of AI-driven autonomy, can Beijan redefine the country’s military capabilities?

Infographic Of The Day

Bollywood has found a new script and it’s a pitch deck. From Ranveer Singh to Anushka Sharma, India’s biggest celebrities are not just endorsing brands anymore, they are building them and have raised $121.5 Mn so far. Here is all about it…

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