UPDATE 1: India’s Udaan Singapore Holdco Defaults on $120M Convertible Notes Due June 30; Noteholders Reject Company Debt Restructuring Proposal

Wed Jul 01, 2026 05:33 AM ET:

Indian B2B e-commerce company Udaan’s Singapore holdco Trustroot Internet Pvt. Ltd has defaulted on its $120 million compulsorily convertible notes due on June 30, according a source close to and source familiar with the development. While the company has proposed a debt restructuring plan which envisages an extension of the repayment schedule, the proposal has been rejected by the noteholders, the source close said.

The company is being advised by Houlihan Lokey and Kirkland & Ellis LLP for the debt restructuring, both the sources said.

Octus reported exclusively on June 29 that Trustroot’s bondholders had appointed PJT Partners and Wong Partnership as advisors on expectations that the company would fail to redeem the notes by the maturity date. The holdco issuer needed to pay a total of around $180 million-$200 million to bondholders by June 30 to settle the maturing notes, including the redemption premium, as reported.

The holder group comprises five or six firms, including Tor Investment Management, Samena Capital and Arena Investors. The maturity had no cure period but the bondholders were willing to extend the repayment timeline if the company had closed a new fund raising, as reported.

Trustroot has been unsuccessfully trying to raise new equity, debt, or both in the past seven to eight months to help the company survive its current cash crunch. Udaan has never been EBITDA positive, as reported.

Part of the fundraising challenge has been that the company and its existing minority shareholders including Lightspeed Venture Partners wanted a higher valuation than being proposed by prospective new equity investors. Goldman Sachs has been advising the company on the equity raising, as reported.

The most recent discussions with the investors for new equity valued the company 50% lower than the $1.6 billion-$1.8 billion valuation used for the June 2025, $114 million equity investment by Lightspeed and M&G Investments. The two private equity investors, which hold their stakes in Udaan through Trustroot, were unwilling to pump in further cash into the company right now, as reported.

The notes would have been compulsorily convertible into shares in the Indian listing vehicle had it listed by now. Under the plans, Trustroot was to be flipped into the onshore listing vehicle, as reported.

Udaan founders Vaibhav Gupta, Amod Malviya and Sujeet Kumar hold a total of around 15%-18% stake in the company, while private equity firm Lightspeed is the single largest shareholder, with an around 33% stake, as reported.

The company operates a network of retailers and suppliers across India dealing in national and regional brands through its online platform, enabling efficient supply chain and logistics operations in the B2B segment across categories like pharma, staples and fast moving consumer goods among others, according to the company website.

Udaan and Kirkland did not respond to requests for comment. Houlihan Lokey declined to comment.