Udaan to Reverse Flip from Singapore to India, Targets IPO in 9-18 Months

In the annals of Indian startup history, 2026 may well be remembered as the year of the “great homecoming.” After years of incorporating in friendlier offshore jurisdictions, a wave of Indian unicorns is charting a course back to their homeland.

Leading this charge is Udaan, the B2B e-commerce giant founded by former Flipkart executives.

In a significant development, Udaan is preparing to initiate the process to move its domicile from Singapore back to India in the coming weeks . This “reverse flip” is a critical precursor to its long-anticipated Initial Public Offering (IPO), which the company now aims to launch within the next 9 to 18 months .

The Road to the Public Markets

Udaan’s journey to this point has been one of intense restructuring and strategic refocusing. Cofounder and CEO Vaibhav Gupta outlined the dual workstreams currently underway: achieving business stability and completing the legal processes for the IPO .

1. The Reverse Merger Process

The company has already secured approval from the National Company Law Tribunal (NCLT) to consolidate its technology, logistics, and wholesale trading units under a single Indian entity, Hiveloop Ecommerce . The next step is the reverse merger of the Singapore-based holding company with Hiveloop, which will then become the ultimate parent company . Gupta confirmed that this process will likely kick off in the next few weeks .

2. The Profitability Mandate

An IPO-ready company needs a compelling financial story. Udaan has spent the last two years building exactly that. The company has consciously moved away from a “growth-at-all-costs” model to one focused on unit economics and sustainable operations .

This has meant making tough choices. Udaan has exited non-essential categories like lifestyle, general merchandise, and electronics to double down on high-density essentials such as groceries, FMCG staples, and its HoReCa (Hotel, Restaurant, Caterer) vertical, Horeca360 .

The results are becoming visible. While operating revenue moderated to around ₹4,561 crore in FY25 (down from a peak of ₹10,000 crore in FY22), the company successfully narrowed its net loss by 37% to ₹1,055 crore . Gupta expects the business to break even by the middle of the next financial year .

A Leaner, Sharper Operation

The reset has been fundamental. At its peak in 2021-22, Udaan operated in over 1,000 cities . Today, it has strategically narrowed its footprint to just 16 cities and 25 warehouses, serving a network of 200,000 shops . This “cluster model,” sometimes referred to internally as “Project Iota,” focuses on penetrating high-density pin codes to maximize efficiency and reduce logistics costs .

This sharper focus allows Udaan to serve its core demographic: the mass market. “Most of modern trade and quick commerce focusses on the top. The mass market households with less than Rs 10 lakh income is the market for us,” Gupta told ET, emphasizing that this segment’s low average order values and thin margins are a poor fit for the quick commerce model but a perfect fit for Udaan’s scaled B2B operation .

The “Reverse Flip” Trend: Why Return to India?

Udaan is not alone in this journey. It joins a growing list of prominent startups, including PhonePe, Groww, Zepto, and Flipkart, that have either completed or initiated a reverse flip to India .

For years, the logic of incorporating in Singapore or the US was driven by easier access to global capital, familiar legal structures, and simpler ESOP frameworks . So, why the sudden change?

The primary driver is the maturing of India’s public markets. With 18 startups listing in 2025 and over 20 more filing for IPOs in 2026, India has proven it can offer deep liquidity and attractive valuations for new-age tech companies . For late-stage startups, the incentive to list at home—where their user base and business are—has never been stronger.

However, as a recent analysis in the Times of India points out, this trend is a “late-stage correction” rather than a fundamental shift in early-stage logic . Founders still incorporate offshore to scale, but they are now returning to harvest value in a vibrant domestic market .

Challenges and the Path Forward

The path to a successful listing is not without hurdles. Udaan’s valuation has reset from a peak of $3.2 billion in 2021 to approximately $1.8 billion in its last funding round in June 2025, where it raised $114 million from M&G Prudential and Lightspeed .

Furthermore, the broader environment for reverse flips has seen some pause. As a Business Standard report from February 2026 noted, concerns over valuation resets, tax implications following the Tiger Global verdict, and a global selloff in tech stocks have made some SaaS startups reassess their timelines . For Udaan, which has already navigated a significant operational reset, the focus remains on execution.

The Final Word

Udaan’s plan to reverse flip to India and go public is a landmark moment for the B2B e-commerce sector. It represents the culmination of a painful but necessary transformation—from a hyper-growth startup to a business built for the long haul, with profitability in sight.

If successful, Udaan’s IPO will not only provide a much-needed liquidity event for its investors but also serve as a powerful case study for other large-scale startups navigating the journey from offshore incorporation to a proud Indian listing.

The next 9 to 18 months will be critical. All eyes will be on Udaan as it works to achieve its profitability target and complete the legal processes that will bring it home.