EvolutionX Debt Capital announces investment in Udaan
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Growth-stage debt financing platform EvolutionX Debt Capital has committed investments in udaan, a B2B e-commerce platform serving over 3 million retailers across multiple categories including Lifestyle, Electronics, Home & Kitchen, Staples, Fruit & Vegetables, FMCG, Pharma and general merchandise. EvolutionX’s investment, coupled with Udaan’s recent capital increase, will enhance the company’s financial strength and further drive its operational efficiencies with an increased focus on profitable growth. This investment in Udaan is EvolutionX’s second investment in India since launching the platform and entering the Asian growth debt space in late 2021, according to a company statement.
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“While venture debt has become a growing asset class in India, there is a clear gap in the growth debt space, with EvolutionX emerging as a leading player to fill that gap, having already committed approximately $85 million to industry-leading technology companies this quarter has led by promising founders and renowned investors. We believe Udaan’s business model offers immense growth potential while keeping technological innovation at the forefront,” said Rahul Shah, Partner and co-lead of leading investments across India and Southeast Asia for EvolutionX.
EvolutionX offers amortizing term credit facilities ranging from $20 million to $50 million along with warrants or convertible instruments. Headquartered in Singapore, EvolutionX has established a robust investment team in Singapore as well as a team based in Mumbai, India in 2022 and intends to establish its presence in China in 2023, the company said in the statement.
“We are pleased to partner with EvolutionX on this funding round. The initiatives to increase efficiency and optimize structural costs that we carried out last year are already showing the first results. Having achieved the milestone of positive unit economics in the previous quarter, we have seen robust business growth for the past two consecutive quarters. We are excited to work with Rahul and his team at EvolutionX as long-term partners on this growth trajectory to transform and organize the country’s massive $1 trillion+ trading market,” said Vaibhav Gupta, Co-Founder and CEO of udaan
