In a major move that signals strategic consolidation in India’s booming eB2B space, IPO-bound Udaan has announced the acquisition of retail-tech startup ShopKirana in an all-stock deal. The acquisition is poised to boost Udaan’s profitability journey, strengthen its core verticals like FMCG and HoReCa, and deepen its penetration in tier-2 and tier-3 markets.
The acquisition, announced on July 18, 2025, combines Udaan’s tech-driven supply chain scale with ShopKirana’s deep kirana network and FMCG expertise, setting the stage for transformational growth across India’s retail-tech ecosystem.
🛒 ShopKirana: Powering Kirana Stores with Technology
Founded in 2015, ShopKirana has emerged as a key enabler for small retail businesses by offering:
- Digital procurement systems,
- Transparent pricing, and
- Efficient last-mile delivery.
Its presence in cities like Indore, Bhopal, Lucknow, Agra, Surat, and Meerut has made it a preferred partner for kiranas looking to modernize and scale.
🤝 A Strategic Milestone in Udaan’s IPO Journey
Describing the acquisition as a “strategic milestone” in Udaan’s journey to IPO and beyond, Vaibhav Gupta, Co-Founder & CEO of Udaan, said:
“ShopKirana has a quality team. Together, we share the belief in winning by becoming a ‘preferred supplier to our shopkeepers’ and ‘preferred partner to brands’. We also share the core strategy of 'winning on costs'.”
“With the combined strength of both organisations and a strong leadership team, we are well-positioned to deliver on our agenda of growth with profitability at scale,” he added.
The combined entity aims to scale high-turnover categories, improve operating leverage, and deliver differentiated value through data-driven logistics and infrastructure — reinforcing Udaan’s leadership in India’s B2B commerce space.
📈 Info Edge Joins Udaan as Shareholder
As part of the acquisition, Info Edge, a major investor in internet-led ventures, joins as a shareholder in Udaan. The move aligns with a shared mission to digitally transform India’s retail-tech sector, making the Udaan-ShopKirana alliance even more impactful for small retailers and large brands alike.
💰 Series G Fundraising: Fueling the Next Phase of Growth
The acquisition follows the successful closure of Udaan’s $114 million Series G funding round, led by M&G Investments and Lightspeed. According to Udaan, the capital will be strategically used to:
- Reinforce category leadership in high-frequency segments like FMCG and HoReCa,
- Expand into untapped markets across Bharat,
- Enhance sourcing-at-scale and supply chain utilization, and
- Unlock cost efficiencies and operating leverage.
🧠 ShopKirana’s Vision Aligns with Udaan’s Scale
Sumit Ghorawat, Co-Founder of ShopKirana, expressed strong optimism about the partnership:
“Joining hands with Udaan marks a defining moment in our journey to empower kirana stores across India. This partnership brings together our expertise in the FMCG space with Udaan's overall scale and infrastructure advantage — enabling us to take more brands to more retailers more efficiently, capturing market share.”
🌐 What This Means for India’s eB2B Market
This acquisition is not just about scale — it’s about creating a digital-first, cost-efficient, and deeply integrated B2B ecosystem for small retailers across India. With:
- A combined footprint across metro and non-metro cities,
- Enhanced credit offerings,
- Tech-powered sourcing and fulfillment systems, and
- A sharp focus on profitability and market share,
Udaan and ShopKirana together are poised to redefine how India’s retail economy functions.
📌 Conclusion
As Udaan prepares for its much-anticipated IPO, the acquisition of ShopKirana solidifies its position as India’s most comprehensive eB2B platform. By marrying operational scale with deep market access and technological innovation, Udaan is building a robust ecosystem that serves the needs of kiranas, brands, and consumers alike.
The journey to profitability at scale has a new milestone — and it’s called ShopKirana.
