The Indian business-to-business (B2B) e-commerce unicorn Udaan has successfully averted a looming bankruptcy crisis. The company reached a formal agreement with its international creditors to resolve a massive $178 million debt claim that had threatened its holding structure.
How the Settlement Breaks Down
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The New Funding: To help stabilize its balance sheet and facilitate the restructuring, the world’s largest asset manager, BlackRock, has stepped in to provide a fresh $45 million credit facility.
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The Remainder: The rest of the restructuring package involves an upfront settlement and terms negotiated directly with the company’s bondholders and offshore lenders.
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The Origin of the Crisis: The legal battle began earlier this month when global creditors dragged Udaan’s Singapore-based parent company, Trustroot Internet, to bankruptcy court. The dispute arose after the firm defaulted on $170 million in compulsorily convertible notes (debt that converts to equity) that matured on June 30.
The Impact on Operations Throughout the legal friction in Singapore, Udaan maintained that its day-to-day commercial operations within India—including its main marketplace and its fintech arm, udaanCapital—remained entirely unaffected. With this new settlement and backing from BlackRock, the company successfully closes the insolvency battle, providing clear breathing room to continue its domestic business operations.
