Udaan – The Unicorn Story 3 Ex-Flipkart Executives. We will update this post regularly as the changes happen in Udaan.
- 1 Udaan- Company Highlights
- 2 About Udaan
- 3 Udaan -Vision & Mission:
- 4 Founders of Udaan and team/How it was Started
- 5 Udaan History /Challenges:
- 6 Udaan – Funding and Investors:
- 7 Udaan Valuation:
- 8 Udaan – Business & Revenue Model:
- 9 Udaan-Awards/Recognition:
- 10 Udaan-Acquisitions & Mergers:
- 11 Udaan-Competitors:
- 12 Udaan-Growth/Revenue:
- 13 Udaan-Future plans:
Udaan- Company Highlights
|Startup Name||Udaan India Private Limited|
|Founders||Sujeet Kumar, Amod Malviya, and Vaibhav Gupta|
|Parent Organization||Udaan India Private Limited|
Udaan (The word “Udaan” refers to “India” which means “The rise”) is becoming the Alibaba in India. Udaan is an online B2B e-commerce website that brings wholesalers, traders, and retailers on a single platform for purchase and sale of various types of goods. It makes the business easy in India and makes B2B commerce more efficient and convenient. It also facilitates secure payment and logistics for the users and further it also enables businesses to discover customers and suppliers across all the categories.
Udaan -Vision & Mission:
The vision and mission of Udaan are to cut the middlemen between the customer and the factory product so that the customers can get the product at its best price in the market. Now, most of the products have to go through various layers like wholesalers, distributors, and retailers.
Further, the company also aims to solve the underwriting problem, logistics, payments, sales, and marketing to benefit both the seller and the customer.
Founders of Udaan and team/How it was Started
Mr. Sujeet Kumar, Mr. Amod Malviya, and Mr. Vaibhav Gupta founded the company with the name “Udaan” in 2016. All of them are formal employees of Flipkart and they all have a detailed understanding of the retail industry in India.
Vaibhav Gupta graduated from IIT Delhi and also attended the Darden School of business. He worked as a senior vice president of business finance and analytics at Flipkart. Before moving into Flipkart, he worked as an engagement manager in Mc Kinsey company and senior consultant in Trilogy E-Business &co.
He said that if Udaan wants to connect with 50 million small businesses, it is possible only through technology.
Sujeet Kumar also graduated from IIT Delhi and he is originally from Kaimur, Bihar, India. He worked as president in Flipkart for almost 4 years. When he was assigned as president in Flipkart, he noticed that Flipkart provides services for more than 500 cities but not to his own town. So, he then came up with the idea of starting “Udaan” which can connect everyone whether its customer or retailer.
Amod graduated from IIT Kharagpur. He worked as CTO (chief technology officer) till July 2015 and he was the one who made Udaan as the fastest-growing trade network in India. He feels that the technology and the birth of smartphones have changed the way we interact with people.
As the supply chain market in India is highly inefficient and because of this the customers are sometimes either paying higher amount or paying the lower amount for the goods purchased by them due to lack of proper market access, unreliable logistics and lack of transparency. To solve this problem in India, they came up with an idea to start Udaan which enables the users to select the customers and suppliers effectively and efficiently.
The trio of IITs gained good exposure in the Indian retail market while they were working in Flipkart earlier. The founders know how one could marry technology with consumers to create a vibrant platform. Their prior experiences also helped them to think and recreate the platform in a different manner. Amod Malviya had experience in technology while Sujeet worked from scratch in developing the various categories of appliances while they were working in Flipkart.
Udaan History /Challenges:
The Retail Industry plays a vital role in the Indian Economy and it is mostly consumption-driven which is expected to reach $3.6trillion from $1.8 trillion. Out of which the consumption in the retail industry accounts for nearly $1trillion and is expected to increase in the near future. The Major consumption of goods includes food grains, fruits, vegetables, medicines, clothing, and even mobile phones these days.
Here is the challenge. Though the consumption in India is higher, the organized segment accounts for only 10 -12 percent of the total retail industry, and this is expected to reach 22 to 25% in the near future.
Except for the retailers in the organized sector, there are millions of retailers who are outside the use of technology across the country. Because of this, they were sometimes shortchanged by intermediaries and middlemen on the price and the quality of the products.
So, facing all the above challenges, Udaan has come with B2B e-commerce and brings all the participants (Wholesaler, distributor, Producer, and the small retail shop owner) on a single platform.
Sujeet Kumar, Founder said that “We want to democratize the entire chain so that there is transparency throughout the process while delivering on efficiency.”
Udaan – Funding and Investors:
Till now, the company has raised a total of $ 899.9 Million in funding overall the 5 rounds. The latest and recent funding happened in March.2020 for an undisclosed amount.
|Lightspeed Venture Partners||November 2016||Series – A||$10Million|
|Lightspeed Venture Partners||February 2018||Series – B||$3.2Billion|
|DST Global, Lightspeed Venture Partners||September 2018||Series – C||$225Million|
|Altimeter Capital, Citi Ventures, DST Global, Footpath Ventures, GGV Capital, Hillhouse Capital Group and Tencent Holdings||October 2019||Series – D||$585Million|
|Trustoot Internet||March 2020||Un disclosed||$30Million|
On recent funding the Udaan is $7.5 bn Valuation
Udaan – Business & Revenue Model:
The major revenue for Udaan comes from financing working capital for its buyers and they charge around 15 to 18 percent on it. Working capital was the major problem for the small retailers as they end up borrowing from the local lenders who charge them a high rate of interest. So, Udaan intends to provide working capital at a reasonable rate of interest.
More Stories: Startup Unfold
Udaan got its recognition when it entered into unicorn market. Unicorn is a privately-owned startup with a valuation of $1billlion or more. Udaan was the fastest company to get added into this list within 26months of its establishment. Companies like Swiggy, Hike took 4 years of time to become one of the unicorns.
Udaan got into this unicorn club when it received funding of $225million from its investors DST Global and Lightspeed venture partners.
Further, within 22 months of operations, it was able to add 1,80,000 sellers and buyers on the platform.
Udaan-Acquisitions & Mergers:
Till now, Udaan has not made any acquisitions but it is open to opportunities that may be available in the future.
The major competitors of Udaan include Bizongo, Priceza, Olist, and Ralali. Bizongo is also a B2B e-commerce venture for packaged products.
Udaan generated a revenue of Rs 46.36 crores in FY 2019 when compared to Rs3.24 crores in FY 2018. The major amount of revenue generated through the delivery income of Rs 27 crores which increased 12 times from Rs2.3 crores in FY-2018.
Udaan plans to merge with partners or the startups who are interested collaborate with them to expand their business in the future.