Udaan’s Creditors Initiate Bankruptcy Proceedings Against Its Parent In Singapore

IPO-bound B2B ecommerce unicorn Udaan’s global creditors have initiated insolvency proceedings against it over default on bonds.

A report by ET, citing sources, said global creditors, including banks and hedge funds, initiated insolvency proceedings in the Singapore High Court against Udaan after its offshore holding entity Trustroot Internet Pvt Ltd defaulted on $170 Mn compulsorily convertible notes or bonds due on June 30.

The creditors include Tor Investment Management, Samena Capital, Arena Investors, Catalyst Funds, Evolution, Nomura and Standard Chartered Bank, among others.

Trustroot was due to pay $170 Mn to $200 Mn to settle the maturing notes, including the redemption premium. The creditors refused to accept a debt restructuring plan that was being sought by Udaan to seek extension on repayment.

“The creditors have been trying to iron out a debt restructuring package with the company for weeks but eventually failed to reach a consensus on the amount to be paid upfront. On Tuesday, they initiated a bankruptcy process by filing a winding up petition,” one of the sources was cited as saying.

Confirming the development, Udaan said the proceedings won’t have any material impact on its operations in India.

“The matters referenced relate to ongoing restructuring negotiations and offshore proceedings among offshore stakeholders at the offshore holding company level. These discussions have no bearing on our operating entities in India, where our teams employ our people and run the day-to-day business. Udaan and udaanCapital continue to operate as usual, serving customers across trade commerce and supply chain financing,” an Udaan spokesperson said.

Since Udaan faced a 59% dip in its equity valuation during its latest Series G round raised last year, along with mounting losses and a thinning order book, creditors were pushing the company to raise a fresh equity round before any extension on repayment could be extended.

As per ET, Udaan has been working with Goldman Sachs for a $150 Mn $200 Mn equity funding but has been struggling to attract investor interest. It has parallely been in talks with financial institutions like BlackRock to secure a $40 Mn credit facility in return for pledging shares.

It reportedly closed a $50-60 Mn top-up funding round from existing investors M&G Prudential and Lightspeed Venture Partners in May this year.

According to the original agreement, the convertible notes were set to turn into equity shares of Udaan if it had listed on public markets by now. While the unicorn has received approval to consolidate its various entities under a single business, the Singapore holding company Trustroot is yet to redomicile in India.

Ahead of the court proceedings, lenders of Udaan’s India unit, including JP Morgan, HSBC, DBS, and Axis Bank, withdrew working capital lines to Udaan, ET said.

Founded in 2016 by former Flipkart executives Sujeet Kumar, Amod Malviya, and Vaibhav Gupta, the Bengaluru-based startup started off with connecting retailers to wholesalers and brands through marketplaces but later expanded operations to logistics and warehouses.

Through the marketplace arm, its main business, retailers can discover suppliers, compare prices, and place bulk orders. Its logistics arm Udaan Express powers the supply chain and delivery network, while fintech vertical udaanCapital offers working capital and invoice financing to retailers. With the acquisition of ShopKirana last year, Udaan deepened its presence in retail tech and last-mile distribution.

However, the struggles of the B2B ecommerce segment in the country complicated Udaan’s position. In FY25, the startup’s revenue declined 20% YoY to ₹4,561 Cr, while loss dipped 37% to ₹1,055 Cr.

During its last reported fundraise of $114 Mn in June 2025, its valuation dipped nearly 59% from its peak of $3.2 Bn to around $1.3 Bn. As per ET, the round closed in May brought this down further to around $800 Mn to $1 Bn, a more than 69% decline from its peak valuation.

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