A press release from Udaan did not provide details like the share swap ratio or ShopKirana’s valuation.
Separately, InfoEdge, which held 26.14% in ShopKirana, said in a stock exchange filing that it will transfer the entire holding to Udaan for a 1.48% stake, valued at $23.13 million, in the B2B company in return. This gives ShopKirana a valuation of $88.5 million.
Following the transaction, sources said, shareholders of ShopKirana, including its founders, will together get a 5-6% stake in Udaan.
Bengaluru-based Udaan, which recently closed a $114-million funding round, said the acquisition will strengthen its position in key categories such as staples, fast-moving consumer goods (FMCG), and hotel, restaurants and catering (HoReCa) by adding ShopKirana’s deep kirana network and category expertise.
The two platforms will combine their tech, supply chain and credit capabilities to drive operational efficiency, expand geographic reach and improve unit economics, it said.
According to Tracxn, Indore-based ShopKirana’s founders — Sumit Ghorawat, Deepak Dhanotiya, and Tanutejas Saraswat — together hold around 35% in the company. Oman India Joint Investment Fund and Sixth Sense Ventures hold 6.6% and 6%, respectively.
This transaction marks a further consolidation in the B2B ecommerce sector, which recently saw Jumbotail acquire commerce and financial services platform Solv India.
Udaan cofounder and chief executive Vaibhav Gupta said the acquisition “is a strategic milestone in our journey to the IPO and beyond”.
Founded in 2015, ShopKirana works with kirana stores, or local mom and pop grocery stores, to simplify how they procure inventory. It has a presence in tier-II and tier-III cities such as Indore, Bhopal, Lucknow, Agra, Surat, and Meerut. Its network adds depth to Udaan’s wider reach, giving the combined business a stronger footing with kiranas and brands outside the metros.
The acquisition also gives Udaan access to ShopKirana’s private label Kisan Kirana, which sells staple products such as pulses, rice and spices. Private label products have higher margins.
“This combination will further accelerate Udaan’s profitability journey by scaling high-turnover categories, improving operating leverage, and delivering differentiated value through data-driven logistics and infrastructure,” the company’s statement said.
Udaan said it plans to use the recent funding from M&G Investments and Lightspeed to grow its presence in frequent-purchase categories such as FMCG and HoReCa, expand into new markets, and improve margins by tightening sourcing, logistics, and costs.
The company also said it has been improving its profitability position, having reduced its fixed costs by 20%, leading to a 40% reduction in Ebitda burn in calendar year 2024, and an additional 20% reduction in the year to date.
In the year ended March 2024, Udaan reported revenue of Rs 5,707 crore — the highest among B2B ecommerce companies in India. However, this was nearly flat from the year-ago period.
Meanwhile, ShopKirana’s business has been on the decline over the last few years. In fiscal year 2025, according to InfoEdge’s filings, the company reported Rs 471 crore in revenue, compared with Rs 643 crore the previous fiscal year and Rs 687 crore in FY23.
ShopKirana’s scale did not grow to the extent of some of the larger players given its more focused presence in smaller markets and relatively lower amount of external capital raised. As per Tracxn, the company has raised $58 million since being founded.
