Udaan has the objective of solving core trade problems for large, medium, and small businesses across India. It is a (B2B) Business-to-Business electronic commerce platform. It is the largest platform in this genre that assists businesses and retailers to source merchandise from importers, while labels, brands, and manufacturers, etc. Udaan has inculcated the use of technology in growing businesses. It was founded in the year 2016 by Hiveloop Technology Private Limited and currently has 1001-5000 employees
The application lets the businesses to Buy and Sell their terms via hassle-free and secure payment gateways. It provides access to new customers and users for manufacturers, marketing and sales report, and brands so that businesses can grow. It assists in discovering new customers, products, and suppliers. It helps connect directly the buyers and sellers who are interested in trading.
Udaan furnishes admittance to new business sectors with a quick, easy, low-wastage, profoundly solid transportation and conveyance framework across India for its purchasers and merchants. Udaan Capital, the NBFC arm zeroed in on SME financing administration, gives monetary items to dealers and purchasers to develop their business. Udaan empowers direct associates between purchasers and dealers which permits one-on-one conversations to arrange terms of exchange between executing parties. The talk includes permits you to have an individual and secure discussion progressively, in the language of your decision. The whole experience is consistent.
Across India, there are flea and discount markets like Ghaffar market and Sadar Bazar in Delhi, Dalmandi in Varanasi, the Textile market in Surat, so on, alongside more modest discount markets in every Area. These business sectors developed over the long run as dealer bunches, and go about as the essential sourcing channels. Practically the entirety of the discount exchange in India begins straightforwardly or in a roundabout way from one of these business sectors.
Currently residing in Bangalore, Karnataka, Amod Malviya completed his Bachelors in Technology in the domain of electrical engineering from IIT Kharagpur in the year 2002. Before co-founding Udaan.com in 2016, he worked as a software engineer at Itellix Software Solutions for 2 years, Sr. Software Engineer at Riya Internet technologies PVT ltd for 1 year, V.P Engineering at ApnaPaisa PVT Ltd for 2 years, and Chief Technology Officer at flipkart.com for 5 years.
Currently residing in Bihar, India, Sujeet completed his Bachelors in Technology in the domain of civil engineering from IIT Delhi. Before co-founding Udan in 2016 he worked as the President of Operations at Flipkart.com for 3 years and 10 months.
Currently residing in Bangalore, Karnataka, Vaibhav completed his Bachelors in Technology from IIT Delhi in the domain of computer science in the year 2002. He moved on to complete his post-graduation (MBA) from the University of Virginia, Darden Graduate School of Business Administration in the year 2008. Before co-founding Udaan.com, he worked as a senior consultant at Trilogy E-business Software India Pvt. Ltd for 4 years, Engagement Manager at McKinsey and Company for 3 years, VP Products, and VP Biz fin and analytics, SVP Biz fin and analytics, on sabbatical at Flipkart for a total of 4 years.
How Udaan.com came into being
Udaan recently entered the billion-dollar club thus making it into the Unicorn club. The three Ex-Flipkart employees founded this company in the year 2016 by leaping faith. They initially intended it to be a logistic platform for buyers and sellers of apparel, staple, and electronics who ram their business on a small scale. They got a good amount of exposure in India for the 8 to 10 months that they worked on this logistic which was good for a startup. They had a huge manageable database of buyers and sellers which assisted them in entering the supply business.
Udaan’s Business Model
- Browse and Shop
The retailers can find the product they desire by browsing on the app and order it.
- Order Received
The seller who has acknowledged the order packs it making it ready to be shipped.
- Pick-up and Delivery
The logistic team at Udaan helps by assisting in the pick-up and delivery of the shipment.
The selling and payment take place on a forum.
The item is then delivered to the retailer and cash is collected.
But how does Udaan make money?
The retail market in India is huge and full of opportunities. If we only talk about medium and small enterprises, there are around 50 million. 600 billion transactions in total take place across these segments. The market however lacks Logistics and this is when a B2B business can boon out of it. Udaan developed a good relationship with the buyers and sellers and now charges a certain percentage on sales in the form of commission that can differ according to the categories. They give credit breaking point to the possibly confirmed purchaser that as well if is qualified for the cutoff. From the outset, they will give Rs. 10000/ – credit with no interest charges then as far as possible will be expanded to a limit of Rs. 250000/-.
In the year 2018, The revenue of the company was Rs.65 crores. The total expenses were Rs 66 crore and they incurred losses of Rs. 59.5 crores. In December 2018, around 1.2 million shipments were dispatched to around 200k purchasers (generally retailers) across over 700 urban areas/towns in India. Some were putting in their first request, speculative yet cheerful — having found out about a stage solely for them.
How is Udaan funded?
In the beginning, in 2016 it was funded by Lightspeed Venture Partners in Series A funding, and Udaan raised $10 M in it. In the latest funding that was in the year 2019, by DST Global and Altimeter Capital, it raised $300 M in series D funding. DST Global, Trustroot Internet, Lightspeed Venture Partners, and Altimeter Capital are the leading investors of the company.
The boost Udaan needed in the market
The biggest factor in Udaan’s increase in consumers was Demonetization and GST. With demonetization, a lot of businesses caved into transferring on the digital platform which assisted and increased Udaan’s user base. The uniform taxation system that comes due to the enabling of GST (goods and services tax) also greatly positively affected Udaan’s business.
The Challenge before Udaan in the market
Udaan has made the life of sellers and buyers across India unimaginably easier and convenient. The economy of India largely depends on the retail Industry. No wonder Mukesh Ambani and Jeff Bezos are fighting over it. The more peculiar thing to note about this Industry however is that despite the size, the organized segment only accounts for 10-12 percent of the retail sector of India. It is expected to touch the mark of 22-25 percent by 2021. Udaan, which archaically acts as a middle man is used by people who tend to be in close contact with technology and are willing to inculcate it in their business. The usage and understanding of Udaan are rather easy but it might fail to attract the businesses that do not want to be associated with a technical feature.
Why is Udaan without a CEO?
Whoa, a unicorn club company without a CEO comes off as rather curiosity generating isn’t it? The founders however choose to let the company run this way. The founders believe it is more of a team that is working towards a single goal and that inclusion of titles might take away the flair of working together in Udaan.
The Opportunities before Udaan
The food grain production continues to increase every year and India is the second-largest producer and transporters of vegetables and fruits. The country alone produces around 259 million tonnes. Udaan has a wide choice if we talk in terms of goods that are available on the platform. The daily average transaction on the website’s platform is more than 6000 tonnes. The company has been transacting more than 500 tonnes of vegetables and fruits.
Udaan’s future goal
The company plans on expanding its service across India touching every corner and nook of the country. They also intend to have a full-stack platform that enables everything associated with the marketplace, buying, and selling.
The innovation stage made by Udaan can precisely anticipate the interest for different classifications of food and non-food things and source the correct provider. Later on, there is a likelihood that Udaan can likewise redirect the overabundance of rural produce in one locale to some other region that has a lack as they have the information close by to comprehend the examples.
Capital investment and details of Udaan
Udaan has 8-9 million sq. feet of space for storage warehouses while the other competitors in the genre of delivery like Amazon and Flipkart have a space of 8.7 million square feet.
ZoomTail is viewed as one of Udaan’s top rivals. Bengaluru-based Zoomtail Technologies Pvt. Ltd offers online business empowering agent answers for a style retailer.ZoomTail Technologies is building India’s biggest B2B internet business stage for design buyer merchandise.
- Big Trade that is one of the top opponents of Udaan is Big exchange which was established in the year 2017. BigTrade having its central command is in Bangalore, Karnataka is one of Udaan’s top adversaries.
TradeKosh is a Pune based startup that was established in the year 2018.TradeKosh is Udaan’s #3 adversaries as it is additionally an online B2B commercial center that associates retailers and producers.