In the last few decades, online technologies have encountered gigantic changes and the e-commerce trend has changed the manner in which we buy things. Ecommerce marketplaces become the most well-known platforms for a seller to sell their items, shopper to shop, and organizations to publicize or feature. However, B2B (Business to Business) e-commerce marketplaces turned out to be strongly popular somewhat recently, where the end clients began purchasing from the e-commerce stores of the retailers. B2B model has a worldwide reach for the end-users, so even independent companies working from homes can offer to clients to another side of the world.
In India, a company named Udaan is performing great in the sector. Udaan, a Bangalore-based B2B marketplace that is exceptionally intended to enable, retailers, wholesalers, dealers, and makers to utilize innovation as a source. Udaan is controlled by Hiveloop Technology Pvt. Ltd and is an extraordinary drive for little and medium businesses in India.
Let’s explore more about Udaan’s business model, revenue, and everything you need to know.
Udaan Company Profile
|Hiveloop Technology Private Limited
|Trustroot Internet Private Limited
|Bangalore, Karnataka, India
|Amod Malviya, Sujeet Kumar, Vaibhav Gupta
About Udaan Company
Udaan is a Bangalore-based B2B trade, planned explicitly for little and medium businesses in India. It brings dealers, wholesalers, retailers, producers, and brands in India onto a solitary platform. With genuine experiences into dynamic patterns and extraordinary B2B exchange highlights, Udaan brings to them the force of tech to scale and support their business.
Udaan is attempting to construct a full-stack platform for small ventures which will be the mix of a marketplace, logistics, and financing. Passing by the reports, there are 50 Million SME (Small and medium undertakings) in India and the absolute number of transactions that occur across these segments has crossed 600 billion.
Amod Malviya, Vaibhav Gupta, and Sujeet Kumar are the founders of Udaan.
Amod Malviya (Co-founder)
Amod Malviya is the Co-founder at Udaan. He was a student at the Indian Institute of Technology, Kharagpur. Before entering Udaan, he was also associated with Flipkart as a Chief Technology Officer. Amod Malviya is a brilliant, very well-skilled technologist whose experience and interests are both profound and expansive. Amod has technical mastery of programming languages (notably Java and C++), scalable infrastructure, search algorithms, even network architecture.
Sujeet Kumar (Co-founder)
Sujeet Kumar has graduated from IIT, Delhi. The beguiling and quiet founder is initially from Kaimur, Bihar, India. Sujeet turned into the President of Operations in Flipkart and chipped away at it for just about 4 years. His ability and work showed his devotion and made him an effective co-founder of Udaan. It was 8 years of his diligent effort before he entered Udaan and gave it a Unicorn status in only 26 months.
Vaibhav Gupta (Co-founder)
Vaibhav Gupta is the Co-founder of Udaan. He completed his graduation from the Indian Institute Of Technology, Delhi, and has additionally gone to the Darden School of Business (University of Virginia). Vaibhav Gupta was the SVP (Senior Vice President) of business money and Analytics at Flipkart. Prior to bouncing into Flipkart, he has functioned as an Engagement Manager in McKinsey and Company and as a Senior Consultant in Trilogy E-Business and Co.
How Udaan Started (Initial Days)
Udaan was founded by the former employees of the big giant e-commerce platform Flipkart, so they all had a certain idea and experience of the business especially logistics. At that time, Udaan was begun uniquely as a calculated platform for small buyers and vendors in gadgets, staples, and attire. At that time they basically designated logistics for roughly 8 to 10 months. They acquired prominence growth in India and built a huge statistics user base of sellers ahead of time and they ventured into the delivery endeavor. Rapidly Udaan is peering toward creating a financing stage for traders.
The objective of Udaan is to cut the agents between the customers and the manufacturer product so the client gets the item at the best costs. Typically, the greater part of the organizations needs to go through a few layers like selective wholesalers and merchants.
Udaan Business Model
Udaan is a Business to business commercial center on which manufacturers and wholesalers can offer their items to retailers by means of a website or other online platform.
Furthermore, the Udaan gives secure payments, logistics, and specialized help, fast deliveries, cheapest rates. The company doesn’t believe in heavy marketing as their customers make their business more popular. They are the resource-light player dependent on their business model. They don’t have faith in claiming resources and furthermore are not wanting to go resource weighty as of now.
Udaan assists organizations with finding customers, traders, and products across classes and interface with them to get the best arrangement. Udaan likewise offers bookkeeping, order management, and installments the board answers for vendors on their foundation. The Promoters of the organization found that financing working capital has been a significant migraine for end retailers. The retailers wind up getting from nearby banks that charge excessively. Udaan means to give working capital to them at a sensible rate.
The company acquired notoriety with coarseness and hard work. In spite of shortcomings in logistics, deals, and various stages, Udaan accepted that those sorts of unpleasant circumstances are currently not, at this point uncommon. Along with that, following the legitimate technique and tech-empowered procedures help to supply a proper yield along these lines fixing the inefficiencies.
Udaan Revenue Model
Udaan’s wide assortment of deal assets comprises revenue from Logistics contributions. An essential resource of deals for Udaan is the delivery costs it takes from the people for getting products from the premises of the seller and turning in something very similar to the purchaser. There furthermore are costs for storing up any cross back of pay from the clients. You can also check Top Logistics Startups in India with excellent service.
In simple words, Udaan has been the mix of a commercial center, logistics, and finance. To comprehend the interest and supply angles across the various classifications, the founders of Udaan focused distinctly on the logistics part for around 8 to 10 months. It assisted them to set up a relationship with the purchasing and selling local area.
Presently, Udaan has been the mix of a commercial center, logistics, and financing. Udaan charges a rate on deals as a commission which shifts in various classes.
Operated by Hiveloop Technology, the company Udaan enlisted Rs. 225.6 crore in revenue from operations for the FY 2019-20, which is a 19X increment from Rs. 11.83 crore for the FY 2018-19. The organized statement catches the profit from auxiliaries of Hiveloop Technology, including Hiveloop Capital that gives credit and transient advances to eCommerce organizations and Newloop Apps Private Limited.
Udaan has raised a total of $1.2B in funding in more than 7 rounds of funding round. The company also raised $280 Million (Rs. 2,045 crores) of funding in its most recent funding round in January 2021 from new and returning financial backers.
Beginning from bringing $10 million funding in Series A subsidizing on Nov 23, 2016, which was lead by Lightspeed Venture Partners. The most recent investment of $300 million in Series D on August 30, 2019 lead by Altimeter Capital and DST Global.
Udaan has its business spread more than 600 towns and options up from sellers in more than 85 towns. It is an astounding platform to foster organizations both little or medium on the equivalent time as you buy or promote your item. Udaan’s android app interfaces with almost about 150,000 dealers, retailers, wholesalers in India.
Established in 2016, Udaan has more than 3 million customers and in excess of 35,000 vendors on its business. It has over 1.7 million, including retailers, Kirana shops, HoReCa, scientific experts, and ranchers, and in excess of 5 lakh, various items curated across 2,500 brands.
Today, the Udaan conveys around 1.5 to 1.75 lakh orders day by day and 4.5 million conveyances per month. According to the revenue and growth rate of the company, it has booked the fastest growth.
In February this year, Udaan had said it intended to extend the distribution center limit by 5X to 50 million square feet across a few states in the following 7-8 years. These would incorporate states like Uttar Pradesh, Bihar, Madhya Pradesh, Chhattisgarh, Odisha, and Karnataka, among others. Udaan’s present warehousing limit is at more than 10 million square feet with 200 distribution centers.
“Udaan has contributed more than 40 billion rupees (US$545.6 million) in the previous 1 to 1.5 year across tech, production network, and different regions, and is focusing on 100% year-on-year development this monetary year,” announced The Economic Times, referring to an interior notice sent by co-founders Amod Malviya, Sujeet Kumar, and Vaibhav Gupta.
The competitors of Udaan are Bizongo, Trade Kosh, ShopKirana, MaxWholesale, Big Trade, ZoomTail, and so on.
There are many B2B companies in the country but in terms of grocery, Udaan is the leading one.
The business of Udaan addresses the problem of the small retailer who has a place with a humble community typically going to the greater urban areas and buying and selling products in mass despite the fact that there are greater contenders than him. Udaan takes care of this gigantic issue of the normal retailer who has a place with the center part of India’s public i.e the middle class.
The best thing we can learn with the Udaan case study is that focused partners are the connections that you have with other business, legislative, or non-consumer substances that help your plan of action work. These can be the connections that your organization has with your providers, your makers, colleagues, and so forth. On account of Udaan, makers and customers are the focused partners.
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