UDAAN (CASE STUDY & BUSINESS MODEL
“Aise jagah jahan par buses milna mushkil hai (such inaccessible places where getting a bus is difficult), the retailers are dependent on Udaan for sourcing and procuring of materials,” says Sujeet
WHATS IN IT FOR ME ?
About Udaan.com – Overview
Udaan is a B2B trade marketplace which is especially designed to empower, retailers, wholesalers, traders, and manufacturers using technology as a source.
Udaan is run by Hiveloop Technology Pvt. Ltd and is a special initiative for small and medium businesses in India.
The main idea was to connect wholesalers, traders, retailers and manufacturers on a single platform via a mobile app.
The udaan app enables users the access to real insights into active trends and many other premium B2B trade features.
It has enabled small and medium business owners to use the power of technology to nurture and scale their businesses.
How Udaan Started – Initial Days
Have you ever heard about the Unicorn club for start-ups ?
A startup has to be valued at $1 billion or above if a privately held startup wishes to be in the unicorn club.
Udaan has recently entered into the Unicorn club.
We will be talking about the growth and also its secrets but before let us first discuss about the initial days of the Unicorn startup – Udaan.com
Udaan was founded in the year 2016 by the former employees of the Ex-flipkart.
Amod Malviya, Vaibhav Gupta and Sujeet Kumar is the trio who founded Udaan.
We will be talking more about the founders and their contribution further in the blog.
Initially, Udaan was started only as a logistic platform for small buyers and sellers in electronics, staple and apparels.
That time they only focused on logistics for approx. 8 to 10 months.
They got very much exposure within India which was very significant for the startup at that time.
During those days, Udaan have built a huge data database of buyers and sellers before they stepped into the supply business.
Also, Very soon Udaan is eyeing to become a lending platform for merchants.
Udaan is trying to build a full stack platform for small and mid-sized enterprises which will be the combination of a marketplace, logistics, and lending.
Udaan business ModelLet me explain to you the whole business model of Udaan in a very straight-forward and simple words. Udaan is a Business to business marketplace on which manufacturers and wholesalers can sell their products to retailers via online platform or mobile app. And, the company provides logistics, secure payments and technology support also. They are the asset-light player based on their Business Model. They do not believe in owing assets and also are not planning to go asset-heavy as of now. Udaan helps businesses discover customers, suppliers and products across categories and connect them in order to get the best deal. The platform also facilitates secure payments and gives logistics support. The company also offers accounting, order management and payment management solutions to merchants on their platform. The Promoters of the company found that financing working capital has been a major headache for end retailers. The retailers end up borrowing from local lenders who charge exorbitantly. Udaan intends to provide working capital(funds) to them at a reasonable rates. So, apart from being a platform for retailers and wholesalers, it has also started underwriting loans for these small businesses. It has also received a non-banking financial company (NBFC) licence for the purpose of providing finances to SMEs.
Revene Model – How Udaan earns ?
Before getting to the revenue model, lets talk about market size and opportunity,
Going by the reports, there are 50 Million SME(Small and medium enterprises) in India and a total number of transactions that take place across these segments have have crossed 600 billion.
The sector has also been characterised by a lot of inefficiencies such as in Logistics, Capital as well as in sales and marketing.
These are the main pain points as well as opportunities for a B2B business online portal like Udaan.
Talking about the revenue model, I have tried to get in touch with the team of Udaan for interaction but unable to achieve so.
So, all the data about the revenue has been collected from anonymous but credible sources.
Udaan has been the combination of a marketplace, logistics, and lending.
In order to understand the demand and supply aspects across the different categories, the founders of Udaan Focused only on the logistics part for about 8-10 months.
It helped them to establish a relationship with the buying and selling community.
Now, Udaan has been the combination of a marketplace, logistics, and lending.
Udaan charges a percentage on sales as a commission which varies in different categories.
Udaan also charges for the logistics in the form of delivery charges from the buyer which also varies according to the product and quantity.
They provide credit limit to the only verified buyer that too if is eligible for the limit.
At first, they will provide Rs. 10000/- credit with no interest charges then the credit limit will be increased to maximum of Rs. 250000/-.
At the moment, Udaan doesn’t intend to make money through providing funds for working capital for its buyers so they do not charge any interest on the credit.
Who initiated Udaan – Founders of udaan.com
The initial Idea of Udaan.com was of the ex-flipkart employees – Amod Malviya, Vaibhav Gupta and Sujeet Kumar.
Vaibhav Gupta was the former Senior VP at flipkart.
Whereas Sujeet Kumar worked as supply chain, built operations and logistics executive at Flipkart.
And Amod Malviya was the Chief Technology Officer at flipkart.
Facts and figures about Udaan
In the fiscal year 2018, the company Udaan reported its revenue of ₹65 crore. Whereas total expenses were ₹66 crore and losses of ₹59.5 crore.
|View on Facebook|
|View on LinkedIn|
|View on Twitter|
|Contact Email||[email protected]|
Udaan Mobile app has approx. 22,657 monthly downloads and is increasing with a growth of 42.98% every month.
Udaan’s official website is Udaan.com which is ranked 36,420 among websites globally based on its 1,277,588 monthly web visitors.
Investor’s Interest in the B2B E-Commerce platforms has been increasing considerably.
Udaan – Bangalore based B2B e-commerce marketplace for retailers, wholesalers, traders, and manufacturers have raised a total of $681.3 M in over 7 rounds of funding.
Starting from raising $10 M in Series A funding on Nov 23, 2016 which was lead by Lightspeed Venture Partners.
Till the latest funding of $300 M in series D on August 30, 2019 lead by Altimeter Capital and DST Global.
I have listed the details of all the fundings that the startup has raised till date.
Competitors of Udaan
Top Competitors of Udaan are –
- ZoomTailZoomTail is seen as one of Udaan’s top competitors.
Bengaluru-based Zoomtail Technologies Pvt. Ltd offers e-commerce enabler solutions for fashion retailer.ZoomTail Technologies is building India’s largest B2B e-commerce platform for fashion consumer goods.
- Bigtrade One of the top rivals of Udaan is Bigtrade which was founded in the year 2017.BigTrade having its headquarters is in Bangalore, Karnataka is one of Udaan’s top rivals.
TradeKosh is a Pune based startup which was founded in the year 2018.TradeKosh is Udaan’s #3 rival as it is also an online B2B marketplace that connects retailers and manufacturers.
lapaas free seo audit tool
Do you know the king of Cosmetic Industry? Its’ Estee Lauder who is leading international manufacturer and marketer of Skin care and beauty products. Who generates $15.2 Billion revenue annually. The company is working in more than 150 countries and territories with...
How Virgin Group Earns | Complete Case Study Do you know how Virgin Group Created more than 200 Branded Company? Virgin Group is a World famous Investment focus company and world recognized International Brand. Virgin Group is founded by Richord Branson whose net...
How Much Berkshire Hathaway Earns | Complete Case StudyDo you know the World’s Best Investor’s Company? It’s Berkshire Hathaway, the second largest most profitable company in the world. It Is Rain By the Famous philanthropist and investor, Warren Buffet who is 3rd...
World's Most Profitable Company | Case StudyDo you know The World’s Most Profitable Company? It is Saudi Aramco, the world's biggest Oil Exporter and Most Profitable Company In the World, located In Saudi Arabia. The Company has 270 Billion barrels in Reserve and has...
Do you remember those silly Ranbir Kapoor and Farhan Akhtar ads in 2016? Yes, those AskMe Bazaar ones’. Well, as you’ve already guessed it, we are going to analyze the shit out of AskMe’s success & failures: what was it doing & what it should’ve done right....
ZOOMCAR CASE STUDY I remember back in my MBA Days, when a newly opened Startup "Zoomcar" was the talk of the town for providing Free First Rides up to 50km. Obviously me and my college friends did take full advantage of it ;p But why were they giving it for FREE?...
Trivago Business Model | Case Study Hotel? trivago, Every Indian is familiar with this monologue. With a motive to create a platform where a person can compare prices on as many shops or websites before purchasing anything and then choose the one with the lowest price...
DO YOU KNOW? Out of total rooms booked via OYO rooms, 28 percent of people book Oyo rooms after they get into a new city. 36 percent of people are business travelers. Another 36 percent is made up of couples. Oyo Rooms is the largest branded network of hotels....
Ikea Case Study- (Business Model) Everybody knows that Ikea offers the products at a very lower price than any retail shop. In this blog, we'll talk about Ikea Case Study(Business Model) as the Swedish furniture company opened its first retail store in India. Like...
Cafe Coffee Day(CCD) Case Study I was shocked by the News that Founder of CCD has committed Suicide. What was the reason behind it? According to resources, He was under pressure from a private equity partner and other lenders. This ultimate blog is dedicated to...
BIG NEWS!! Walmart has acquired Flipkart for $16 billion which is considered as the world’s largest e-commerce deal. But What does Walmart(WMT) does? According to Wikipedia, Walmart Inc. is an American multinational retail corporation that operates a chain of...
Are you a traveler or have a spare room? Then you must have heard of Airbnb and how you can rent a room at an affordable price. Have you ever wondered how Airbnb Business Model works? Why is Airbnb so successful? How much revenue does Airbnb make? Started by Brian...
Cloud Kitchen Business Model In this digital age, everything is becoming digitized and technologically advanced. The internet has become a faster source of earning revenue. From clothes and shoes to gadgets and cosmetics, everything is available for sale online. With...
Patanjali Case study & Detailed Analysis(Business Model): As Baba Ramdev is famous for Yoga and Ayurveda. In this blog You will get to know entrepreneurial side of Ramkrishna Yadav. How a Desi Company replaces colgate? How a Yoga Guru created a approx Rs...
Detailed Case Study on Practo Business model:- Making your clinic visits cashless, paperless and painless ~ Motive of Practo Business Model Have you ever searched for an online doctor? If you have ever booked an online...
ITC Case Study | Business Model (ITC Marketing Strategy) ITC Case Study: Have you ever wondered how the Indian Tobacco Company (ITC) became a leading FMCG Company in the market? Yes, you got it right ITC was started as a tobacco company. Here's a ITC case study to...
LINKEDIN BUSINESS MODEL (MOST DETAILED CASE STUDY) Are you a professional? Have you ever searched for jobs on LinkedIn? If yes then have you wondered how Business Model of LinkedIn works? Do you want to know? We have got all covered for you! What's in it for you? #1...
Detailed Case study on Nykaa Business Model: If you are a girl or have a girlfriend who loves makeup then you would have heard of Nykaa. Have you wondered how Business Model of Nykaa formed? How do you get such high discounts on Nykaa? Do you know about the...
NDA Marketing Strategy | Narendra Modi Vs Rahul Gandhi Marketing Strategy 101 Question of the year, Who will win the Election? Why did Rahul Gandhi lose? What Strategies Congress Didn’t use? Why Rahul Gandhi Demarketing Strategies didn’t work? How Narendra Modi...
Dream 11 Business Model | How Dream 11 makes money 💲? | Marketing Strategy 101 With cricketing season round the corner, recently, my friend approached me saying “bhai Dream 11 ka kya business model hai yar!” I was flabbergasted to see the excitement on his face....
- Readers Rating
- Rated 5 stars
5 / 5 (Reviewers)
- Your Rating