Udaan is a company that enables sellers, merchants, and wholesalers to aid India’s small and medium companies. Technologies, household and kitchen, fruits and veggies, toys, and other divisions are supported by Udaan’s platform.
Udaan is an e-commerce platform that connects businesses. By utilising the power of technology, the organisation assists its consumers in growing their enterprises. It is widely regarded as one of the largest national distribution platforms of its kind, having already achieved quantum supremacy after raising $225 million in 2018.
It gives its consumers access to new markets with the goal of making doing business in India easier. Additionally, it offers financial products to both sellers and buyers in the country. The company’s purpose is to bring together traders, manufacturers, wholesalers, and retailers on one platform.
How did Udaan get its start?
Udaan was founded by former Flipkart employees Amod Malviya, Vaibhav Gupta, and Sujeet Kumar. They came up with the concept to launch Udaan in order to help India’s small and medium-sized businesses.
Udaan started out as a logistics platform for small electronics buyers and sellers. During the first 8 to 10 months, they concentrated on electronics, and as a result, Udaan was able to gain recognition throughout the country, which was critical for them as a startup. Udaan’s main criteria before entering the supply business was to build a strong database. The Business – to – business eCommerce startup is now aiming to be a commercial loan platform.
Udaan’s structure and operation
Udaan is the asset-light player, depending on the Business Strategy. They have no intention of buying anything. Udaan, a B2B e-commerce platform, helps businesses locate new consumers, suppliers, and merchandise in a wide range of categories in addition to receiving the greatest deals. Furthermore, the organisation facilitates secure transactions and further logistical support. Accounting, order, and payment management services are available to merchants who register on Udaan’s platform. It allows businesses to obtain working capital (funds) at competitive rates. Udaan is primarily a platform for distributors and retailers that also helps with small company loan underwriting.
Udaan is expanding. Udaan is home to a diverse group of merchants, farmers, shopkeepers, proprietors, restaurants, pharmacies, and street sellers. It has a large supply chain system across India, which allows it to fulfil more than half of the orders placed on its site. Udaan now boasts a product catalogue of more than 5 lakh products. Udaan claims to be India’s largest B2B platform, with 30+ millions of merchants and 25000+ sellers now linked to the business, which now works in over 900 cities.
How Udaan generates revenue
Considering logistics is such a significant aspect of Udaan’s operations, it also acts as an income source. Udaan collects market participants’ delivery fees in exchange for the services it offers, which include picking up products from sellers’ premises and delivering them to purchasers. Fees are also paid to the corporation for collecting any returns of purchases from clients.
Udaan’s NBFC subsidiary also provides credit to its merchants and traders, allowing them to meet their working capital needs. Udaan’s service assists the company in generating attention, which becomes a valuable source of money for the platform. Udaan also earns money from receivable management services, such as collecting cash payments from customers on behalf of vendors or receiving payments online on behalf of sellers.
Udaan’s long-term aspirations
udaan, India’s leading b2b e-Commerce platform, revealed its plans to establish the groundwork for the next phase of growth on Friday, September 10, 2021, with a vision to create a world-class institution. The strategy, which includes a CEO-led and Board-led organisation, aims to make udaan a future-ready organisation with the goal of capitalising on the immense opportunity for growth that the Indian eCommerce sector provides. The Co-Founders always regarded udaan as a professionally administered institution that would outlast them. They matched a powerful and common vision with their competence to create a renowned and competently run institution as part of this ambition. This paradigm facilitated speed, experimentation, and learning, all of which contributed to solid company foundations and leadership depth.