According to Gupta, Udaan decreased its cash burn by around 40% in the first half of 2022.

Udaan also reported a contribution margin of ‘level2’ profitability in the first quarter of the last fiscal year. Udaan closed a $225 million debt financing through convertible notes recently. The company intends to go public in May 2023.

Gupta stated in his memo that same-store growth would be critical to continue strengthening its unit ecosystem.

 According to a person familiar with the situation, pharma and fresh are now accounting for 70% of Udaan’s total business. These two vertices have emerged as the most important categories in recent years.

Gupta predicted that the company’s cost of capital would rise, citing global macroeconomic changes. 

Gupta wrote that companies around the world are reconsidering what the current environment and macroeconomic crisis mean for them. The outlook for return-to-macro-stability ranges from 12 to 36 months, and capital market volatility and uncertainty are high right now. Udaan is in a better position to handle and keep progressing toward the agenda through these challenging times, adding that Udaan would also have to make the adjustments or choices.