Udaan - How it Simplified B2B Trading?

The modern consumer relies on a network of traders, wholesalers, retailers, and manufacturers for a myriad of essential products. E-commerce has made shopping easier for customers, but it has also created difficulties for the different participants in the supply chain.

Building relationships inside the distribution channel has proven to be a challenging undertaking for retail stores, store owners, and anyone involved in the wholesaling and retailing sector. B2B eCommerce solutions have emerged in response to this demand, with the goal of establishing smooth linkages throughout the chain.

Udaan, as a prominent player in this space, is specifically designed to facilitate connections and aid traders, retailers, and wholesalers in the small and medium businesses of India. 

Udaan's multipurpose platform, which functions as a B2B trading platform in India, covers a broad range of categories, such as toys, home and kitchen, electronics, fruits and vegetables, and more. Its purpose is to make distribution network operations more efficient and collaborative while offering businesses in India a complete solution.

Read this article to know more about Udaan founders, business model, revenue model, growth, challenges faced, funding, and more.

Udaan - Company Highlights

Udaan - About
Udaan - How it Works
Udaan - Industry
Udaan - Founders and Team
Udaan - Startup Story
Udaan - Mission and Vision
Udaan - Name, Tagline, and Logo
Udaan - Business Model
Udaan - Revenue Model
Udaan - Challenges Faced
Udaan - Funding and Investors
Udaan - Investments
Udaan - Growth
Udaan - Partnerships
Udaan - Advertisements and Social Media Campaigns
Udaan - Awards and Achievements
Udaan - Competitors
Udaan - Future Plans

Udaan - About

Udaan is a (B2B) Business-to-Business e-commerce platform. The company helps its users to grow their businesses by leveraging the power of technology. It is popularly known as one of the largest national distribution platforms of its kind that has already attained unicorn status, thereby becoming one among the unicorns of India, when it raised around $225 million in 2018.

With an aim to make business easy in India, it provides its users, access to new markets. Furthermore, it also provides financial products for the sellers and buyers of the country as well. The goal of the company is to bring traders, manufacturers, wholesalers, and retailers under a single platform.

Udaan - How it Works

Udaan is an all-inclusive marketplace that links producers, retailers, wholesalers, and dealers while providing a wide selection of premium goods at affordable costs. It offers merchants an easy-to-use onboarding process that requires little information, as well as effective catalog tools that simplify the presentation of products and provide a dynamic, two-way channel for trade.

It facilitates seamless integration for sellers by supporting established trade practices and ensuring reliable delivery through udaanExpress, backed by partnerships with leading courier services in India.

The platform places a high priority on compliance, providing a safe and transparent environment for transactions along with a dependable payment gateway. By extending this dedication to safe and prompt product deliveries, the platform further solidifies its standing as a reputable e-commerce platform.

In essence, Udaan not only connects businesses but also simplifies the selling process, offering a secure and efficient marketplace that prioritizes transparency, compliance, and customer satisfaction.

Udaan - Industry

The India E-Commerce Market is estimated to be valued at $ 112.93 billion in 2024, and projections suggest a robust growth trajectory, reaching $ 299.01 billion by 2029 with a notable CAGR of 21.5% during the forecast period (2024-2029), according to analysis from Mordor Intelligence.

In this dynamic e-commerce environment, Udaan stands out as a major force in the B2B eCommerce market. According to recent reports as of January 5, 2024, Udaan is expected to play a major role in the industry's growth. The B2B eCommerce market is expected to grow at an attractive compound annual growth rate (CAGR) of approximately 20% until FY25.

Udaan - Founders and Team

Udaan was founded by Amod Malviya (co-founder and Engineer), Vaibhav Gupta (co-founder), and Sujeet Kumar (co-founder).

Amod Malviya

Amod Malviya is the Founder and the Engineer of Udaan. Malviya prominently served as the Chief Technology Officer at Flipkart for a period of more than 5 years. Itellix Software Solutions, Riya Internet Technologies Pvt Ltd, and ApnaPaisa Pvt. Ltd. are some other companies where Amod has served as Software Engineer, Sr. Software Engineer, and V.P Engineering respectively before founding Udaan. Amod Malviya was an alumnus of the Indian Institute of Technology, Kharagpur, from where he completed his BTech in Electrical Engineering.

Vaibhav Gupta

Vaibhav Gupta is another founder of Udaan, who was also appointed as the CEO of the company in September 2021. Vaibhav was also a previous employee at Flipkart, which he joined after serving as an Engagement Manager and Senior Consultant at McKinsey & Company and Trilogy E-Business Software India Ltd. respectively. Gupta is also an IITian, who graduated from IIT Delhi with Computer Science & Engineering. He then pursued his MBA from the University of Virginia, Darden Graduate School of Business Administration.

Sujeet Kumar

Sujeet Kumar is the co-founder of Udaan. He pursued his BTech in Civil Engineering from the Indian Institute of Technology, Delhi. Sujeet was appointed as the President of Operations at Flipkart, where he served for over 3 years before founding Udaan.

Udaan operates with a an employee strength between 1001-5000, as per LinkedIn.

Udaan - Startup Story

In 2016, Udaan took flight from its base in Bangalore, setting out on a journey that would redefine B2B e-commerce in India. Amod Malviya, Vaibhav Gupta, and Sujeet Kumar, three visionaries who had developed their skills at Flipkart, founded the company and brought a plethora of experience with them. Their varied positions at Flipkart together created the foundation for an initiative that aims to transform how companies interact and prosper.

At first, Udaan concentrated on solving the unique problems that small buyers and sellers in the electronics industry faced. For the first eight to ten months, the startup focused on being well-known around the nation, realizing that having a solid database was crucial before going all in with the supply business.

“Almost 94% of product sales in India happen through mom-and-pop stores. But small store owners have major sourcing and supply chain problems. We felt catering to their needs is a huge opportunity," said Udaan Co-founder Sujeet Kumar.

After becoming popular as a platform for logistics, Udaan carefully increased the range of products it offered. It developed into a well-known B2B marketplace over time, bringing together manufacturers, merchants, and distributors. Udaan is growing today and wants to become more than just a trading platform.

Udaan - Mission and Vision

Mission: As per the company's website, their mission is articulated as:

Our mission is to enable small manufacturers, farmers, and brands to market and sell their products across the country at low cost with 100% payment security and complete transparency. While doing so we enable small businesses such as shopkeepers, kirana, restaurants, street vendors, chemists, offices, small factories, contractors etc. to source from a large selection of high-quality products at best prices while facilitating efficient and transparent transactions with huge convenience.

Vision: The vision of Udaan is to "transform the way trade is done in India leveraging technology."

Udaan - Name, Tagline, and Logo

Udaan - Business Model

Udaan sets itself apart as an asset-light player by deliberately avoiding asset ownership in its business model. It is a dynamic marketplace that connects businesses and functions as a B2B e-commerce platform, enabling them to find a wide range of suppliers, consumers, and items in different categories. Beyond just facilitating transactions, Udaan offers a wide range of services. For smooth operations, the platform guarantees safe payments and offers extra logistical support.

Merchants on the Udaan platform benefit from a suite of solutions encompassing accounting, order management, and payment management. Udaan goes beyond traditional e-commerce functions by offering working capital to retailers at reasonable rates, effectively underwriting loans for small businesses.

This unique feature positions Udaan not only as a facilitator of trade between retailers and wholesalers but also as a financial enabler for the growth of small businesses. Operating in diverse categories such as lifestyle, electronics, FMCG, pharma, home and kitchen, staples, fruits and vegetables, toys, and general merchandise, Udaan's business model aligns with its mission to empower businesses across a spectrum of industries.

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Udaan - Revenue Model

The revenue model of Udaan can be laid out as:

• Revenue from Logistics: As logistics is an important part of the services of Udaan, it also serves as a revenue driver for the company. Udaan collects delivery charges from the market participants against the services it provides, associated with the pick up of goods from the seller’s premises and delivering the same to the buyers. The company also receives fees for collecting any return of sales from the customers.
• Warehousing services: Udaan offers storage and warehousing services for the sellers who are registered with the platform in order to deliver goods faster to the buyers, which in turn generates revenues for the company.
• Receivable collection services: Udaan also collects fees from receivable management services that include the collection of payments from buyers in cash on behalf of the sellers or accepting payments online on behalf of the sellers.
• Advertisement services: The advertisement services that Udaan provides, where the company promotes the product listings to ensure better visibility among the buyers of the platform also contributes to a part of their revenues.
• Interest from credit: Udaan also offers credit to its merchants and traders via its NBFC arm, which helps them meet their working capital requirements. This service of Udaan helps the company generate interests, which thus becomes an important source of revenue for the platform.
• Other value-added services: Udaan offers numerous other fee-based value-added services to the businesses that are registered on its platform. These services consist of packaging and printing labels on products, the printing of invoices, and returns management services, which also add up to the total revenues of the company.

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Udaan - Challenges Faced

Udaan faces several challenges in the competitive business world. Selecting the appropriate things to sell and the most effective means to reach customers is a major challenge. The dynamic nature of the market makes things difficult. It can be difficult for Udaan to persuade companies to use their web platform.

The company wants to use technology and efficient delivery methods to grow, but making these work smoothly on a large scale is tough. In the competition, Udaan has big rivals like Flipkart Wholesale, Amazon Business, and Jiomart Partners, as well as new players like Elastic Run and Shop Kirana. Building a good supply chain, or the way they get products to customers, is a big challenge for Udaan.

In addition, Udaan had to let go of a few workers in December 2023, which raised concerns about the viability of the business. This was their third layoff as they had previously done two in 2022. Thus, in addition to addressing corporate difficulties, Udaan also has internal problems.

Udaan - Funding and Investors

Udaan, having undergone 15 funding rounds, has successfully raised a total of $2 billion. However, its valuation stands at $1.8 billion, reflecting a decrease from its previous valuation of $3.2 billion.

Here's look at the prominent Udaan funding rounds that the company has seen to date:

Udaan - Investments

Udaan has invested in 3 companies till now.

Below are the details:

Udaan - Growth

Udaan is experiencing remarkable growth, connecting a diverse array of merchants, including farmers, shopkeepers, restaurant owners, chemists, and street vendors. With the help of its vast supply chain network, which covers all of India, more than half of the orders submitted on its site are fulfilled. Udaan is pleased to offer a wide portfolio with over 5 lakh products as of 2021. Udaan, which bills itself as the biggest B2B marketplace in India, has a huge network that includes more than 25,000 sellers and over 30 lakh retailers. As of December 2023, Udaan was operating in over 900 cities and is a major player in the Indian economic scene.

Let's dive into some of the growth highlights of the company:

• It claims to have a network of 3 million+ registered users as of January 2024.
• The company has 25,000 - 30,000 sellers as of January 2024.
• It operates as a market leader in the B2B eCommerce marketplace.
• Udaan is one of the fastest companies to scale to a unicorn, which has achieved the unicorn valuation back in September 2018.

Udaan Financials

Udaan Expenses

Udaan total expenses has decreased from Rs 12,978 crore in FY22 to Rs 7,751 crore in FY23.

EBITDA

Udaan - Partnerships

Hummel

The company partnered with Danish sportstyle brand, Hummel for pan-India distribution partnership on January 18, 2021.

Reliance Retails

Reliance Consumer Products (RCPL), the FMCG division of Reliance Retail, has partnered with B2B e-commerce platform Udaan in April, 2023 to distribute its recently acquired beverage brand Campa throughout Kirana stores in all of India.

Udaan - Advertisements and Social Media Campaigns

Kirana

The advertising campaign emphasizes how simple utilizing the Udaan app is for small business owners. This campaign is a component of Udaan's strategy to revolutionize how kirana shop owners get their daily supplies while also growing its presence in the food-FMCG segment across the nation.

Udaan - Awards and Achievements

Udaan has earned a lot of praise and attention for its outstanding achievements in the business sector. Some notable ones include:

Workplace Excellence (2022): Udaan was honored with the Best Places to Work in India Award by AmbitionBox, reflecting its commitment to creating a positive and exceptional work environment for its employees.

Forbes Accolade (2019): Forbes presented Udaan with the FILA Outstanding Startup of the Year award, recognizing the company's exceptional contributions to the startup ecosystem and its noteworthy performance in the industry.

Unicorn Recognition (2018): Udaan has been recognized as one of the fastest companies to scale to a unicorn, which has achieved the unicorn valuation back in September 2018.

Udaan - Competitors

Here's to mention the top Udaan competitors in India:

• Meesho
• DMart
• Moglix
• Bizongo
• TradeIndia
• ZoomTail
• BigTrade
• Tradekosh

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Udaan - Future Plans

Udaan successfully raised capital in December 2023, and the company has big hopes for the future with this support. The recently obtained funds will be used to improve customer satisfaction, broaden the company's market reach, cultivate strategic vendor relationships, and strengthen the supply chain's and credit operations' long-term capacities.

Udaan is keen on utilizing the funds to drive profitability and aims to position itself for a potential entry into the public market within the next 12-18 months, according to reports from December 2023. This strategic approach aligns with Udaan's vision for sustained growth and market leadership in the B2B e-commerce space.

FAQs

What is Udaan?

Udaan is a market leader in the B2B eCommerce segment. Founded in 2016 in Bengaluru, Udaan brings manufacturers, traders, retailers, and wholesalers into a single platform.

Who are the founders of Udaan?

Amod Malviya, Sujeet Kumar, and Vaibhav Gupta founded Udaan.

Who is the CEO of Udaan?

Vaibhav Gupta has been announced as the CEO of Udaan in September 2021.

Is Udaan a B2B trading platform in India?

Yes, Udaan is a B2B trading platform in India. The Bengaluru-based B2B ecommerce unicorn is designed to bring manufacturers, traders, wholesalers, and retailers under the same platform.

Is Udaan unicorn?

Yes, Udaan is a unicorn company in India, which is also hailed as the fastest tech startup to receive the unicorn status. Udaan achieved this feat when it raised $225 million in funding in September 2018.

What are some of the Udaan company products?

Udaan makes a wide range of products available to all, which includes rice and rice products, salt, spices, masala, pulses and grains, dry fruits, along with products from several other categories including electronics and appliances, medicines, home and kitchen appliances, hardware supplies, luggage, backpacks and more.

Who are the Udaan competitors in India?

Udaan competitors in India are:

• Bizongo
• Meesho
• TradeIndia
• DMart
• Moglix
• Zoomtail
• Bigtrade
• Tradekosh

Who are Udaan investors?

Some of the prominent Udaan investors are Microsoft, DST Global, Lightspeed Venture Partners and more.

How is Udaan funding?

Udaan funding has been overwhelming indeed. The B2B ecommerce unicorn has received around $2 billion in funding to date.