Startups have been moving towards finding new ways to raise money, and doing so with convertible notes is one such hack. This week, B2B e-commerce firm Udaan raised $120 million in convertible notes, but delayed its IPO plans.
What are convertible notes? To put it simply, a company raises money with convertible notes by taking short-term loans in exchange for the promise of equity later. This exchange of equity typically occurs in a subsequent round of financing or an IPO. Recently, edtech giant Byju’s also raised $250 million in convertible notes.
Boat receives $60 million in funding from Warburg Pincus, Malabar Investments: The D2C audio and wearables brand has raised $60 million, or around Rs 500 crore, in convertible bond funding from existing investor Warburg Pincus and new investor Malabar Investments, and has formally withdrawn its listing plans. Boat has set a minimum valuation cap of about $1.2 billion as part of this financing.
Udaan raises $120 million through convertible notes: Business-to-business (B2B) e-commerce startup Udaan has raised $120 million through convertible notes and debt from existing shareholders and bondholders. Sources said $30-50 million is expected to come in the second phase.
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