From Complexity to Convenience: How Udaan Transformed B2B Trading
The modern consumer relies on a network of traders, wholesalers, retailers, and manufacturers for a myriad of essential products. E-commerce has made shopping easier for customers, but it has also created difficulties for the different participants in the supply chain.
Building relationships inside the distribution channel has proven to be a challenging undertaking for retail stores, store owners, and anyone involved in the wholesaling and retailing sector. B2B eCommerce solutions have emerged in response to this demand, with the goal of establishing smooth linkages throughout the chain.
Udaan, as a prominent player in this space, is specifically designed to facilitate connections and aid traders, retailers, and wholesalers in the small and medium businesses of India.
Udaan's multipurpose platform, which functions as a B2B trading platform in India, covers a broad range of categories, such as toys, home and kitchen, electronics, fruits and vegetables, and more. Its purpose is to make distribution network operations more efficient and collaborative while offering businesses in India a complete solution.
Read this article to know more about Udaan's founders, business model, revenue model, growth, challenges faced, funding, and more.
Udaan - Company Highlights
| STARTUP NAME | UDAAN |
|---|---|
| Headquarters | Bangalore, Karnataka, India |
| Sector | E-commerce |
| Founder | Amod Malviya, Vaibhav Gupta and Sujeet Kumar |
| Founded | 2016 |
| Valuation | ~$1.8 billion (Series G, June 2025, a flat round) |
| Website | udaan.com |
Udaan - About
Udaan - How it Works
Udaan - Industry
Udaan - Founders and Team
Udaan - Startup Story
Udaan - Mission and Vision
Udaan - Name, Tagline, and Logo
Udaan - Business Model
Udaan - Revenue Model
Udaan - Challenges Faced
Udaan - Funding and Investors
Udaan - Investments
Udaan - Acquisitions
Udaan - Financials
Udaan - Advertisements and Social Media Campaigns
Udaan - Awards and Achievements
Udaan - Competitors
Udaan - Future Plans
Udaan - About
Udaan is a (B2B) Business-to-Business e-commerce platform. The company helps its users to grow their businesses by leveraging the power of technology. It is popularly known as one of the largest national distribution platforms of its kind that has already attained unicorn status, thereby becoming one of the unicorns of India, when it raised around $225 million in 2018.
With an aim to make business easy in India, it provides its users, access to new markets. Furthermore, it also provides financial products for the sellers and buyers of the country as well. The goal of the company is to bring traders, manufacturers, wholesalers, and retailers under a single platform.
Udaan - How it Works
Udaan is an all-inclusive marketplace that links producers, retailers, wholesalers, and dealers while providing a wide selection of premium goods at affordable costs. It offers merchants an easy-to-use onboarding process that requires little information, as well as effective catalog tools that simplify the presentation of products and provide a dynamic, two-way channel for trade.
It facilitates seamless integration for sellers by supporting established trade practices and ensuring reliable delivery through udaanExpress, backed by partnerships with leading courier services in India.
The platform places a high priority on compliance, providing a safe and transparent environment for transactions along with a dependable payment gateway. By extending this dedication to safe and prompt product deliveries, the platform further solidifies its standing as a reputable e-commerce platform.
In essence, Udaan not only connects businesses but also simplifies the selling process, offering a secure and efficient marketplace that prioritizes transparency, compliance, and customer satisfaction.
Udaan - Industry
The India E-Commerce Market is estimated to be valued at $112.93 billion in 2024, and projections suggest a robust growth trajectory, reaching $299.01 billion by 2029 with a notable CAGR of 21.5% during the forecast period (2024-2029), according to analysis from Mordor Intelligence.
In this environment, udaan remains the largest player in India's unorganised B2B commerce market, though competition has intensified sharply from Reliance's JioMart and the B2B arms of Flipkart and Amazon.
Udaan Platform Scale
As of 2026, udaan reports:
- Over 3 million users on the platform
- 1.7 million retailers, chemists, kirana stores, HoReCa outlets and farmers
- 30,000 sellers
- Delivery across 900 cities and 12,000 pin codes through udaanExpress
- Over 500,000 products across 14 categories
Read those alongside the financials rather than instead of them. udaan's revenue actually fell about 20% in FY25 as it withdrew from non-core segments, so reach has kept expanding while the topline deliberately contracted.
Udaan - Founders and Team
Udaan was founded by Amod Malviya (co-founder and Engineer), Vaibhav Gupta (co-founder), and Sujeet Kumar (co-founder).
Amod Malviya
Amod Malviya is the Founder and the Engineer of Udaan. Malviya prominently served as the Chief Technology Officer at Flipkart for a period of more than 5 years. Itellix Software Solutions, Riya Internet Technologies Pvt Ltd, and ApnaPaisa Pvt. Ltd. are some other companies where Amod has served as Software Engineer, Sr. Software Engineer, and V.P Engineering respectively before founding Udaan. Amod Malviya was an alumnus of the Indian Institute of Technology, Kharagpur, from where he completed his BTech in Electrical Engineering.
Vaibhav Gupta
Vaibhav Gupta is another founder of Udaan, who was also appointed as the CEO of the company in September 2021. Vaibhav was also a previous employee at Flipkart, which he joined after serving as an Engagement Manager and Senior Consultant at McKinsey & Company and Trilogy E-Business Software India Ltd. respectively. Gupta is also an IITian, who graduated from IIT Delhi with Computer Science & Engineering. He then pursued his MBA from the University of Virginia, Darden Graduate School of Business Administration.
Sujeet Kumar
Sujeet Kumar is the co-founder of Udaan. He pursued his BTech in Civil Engineering from the Indian Institute of Technology, Delhi. Sujeet was appointed as the President of Operations at Flipkart, where he served for over 3 years before founding Udaan.
Udaan does not routinely disclose its salaried headcount, and aggregator estimates of it are unreliable, so no figure is given here.
Udaan - Startup Story
In 2016, Udaan took flight from its base in Bangalore, setting out on a journey that would redefine B2B e-commerce in India. Amod Malviya, Vaibhav Gupta, and Sujeet Kumar, three visionaries who had developed their skills at Flipkart, founded the company and brought a plethora of experience with them. Their varied positions at Flipkart together created the foundation for an initiative that aims to transform how companies interact and prosper.
At first, Udaan concentrated on solving the unique problems that small buyers and sellers in the electronics industry faced. For the first eight to ten months, the startup focused on being well-known around the nation, realizing that having a solid database was crucial before going all in with the supply business.
“Almost 94% of product sales in India happen through mom-and-pop stores. But small store owners have major sourcing and supply chain problems. We felt catering to their needs is a huge opportunity," said Udaan Co-founder Sujeet Kumar.
After becoming popular as a platform for logistics, Udaan carefully increased the range of products it offered. It developed into a well-known B2B marketplace over time, bringing together manufacturers, merchants, and distributors. Udaan is growing today and wants to become more than just a trading platform.
Udaan - Mission and Vision
Mission: As per the company's website, their mission is articulated as:
Our mission is to enable small manufacturers, farmers, and brands to market and sell their products across the country at low cost with 100% payment security and complete transparency. While doing so we enable small businesses such as shopkeepers, kirana, restaurants, street vendors, chemists, offices, small factories, contractors etc. to source from a large selection of high-quality products at best prices while facilitating efficient and transparent transactions with huge convenience.
Vision: The vision of Udaan is to "transform the way trade is done in India leveraging technology."
Udaan - Name, Tagline, and Logo
Udaan - Business Model
Udaan sets itself apart as an asset-light player by deliberately avoiding asset ownership in its business model. It is a dynamic marketplace that connects businesses and functions as a B2B e-commerce platform, enabling them to find a wide range of suppliers, consumers, and items in different categories. Beyond just facilitating transactions, Udaan offers a wide range of services. For smooth operations, the platform guarantees safe payments and offers extra logistical support.
Merchants on the Udaan platform benefit from a suite of solutions encompassing accounting, order management, and payment management. Udaan goes beyond traditional e-commerce functions by offering working capital to retailers at reasonable rates, effectively underwriting loans for small businesses.
This unique feature positions Udaan not only as a facilitator of trade between retailers and wholesalers but also as a financial enabler for the growth of small businesses. Operating in diverse categories such as lifestyle, electronics, FMCG, pharma, home and kitchen, staples, fruits and vegetables, toys, and general merchandise, Udaan's business model aligns with its mission to empower businesses across a spectrum of industries.
Himangi Khare
Udaan - Revenue Model
The revenue model of Udaan can be laid out as:
- Revenue from Logistics: As logistics is an important part of the services of Udaan, it also serves as a revenue driver for the company. Udaan collects delivery charges from the market participants against the services it provides, associated with the pick up of goods from the seller’s premises and delivering the same to the buyers. The company also receives fees for collecting any return of sales from the customers.
- Warehousing services: Udaan offers storage and warehousing services for the sellers who are registered with the platform in order to deliver goods faster to the buyers, which in turn generates revenues for the company.
- Receivable collection services: Udaan also collects fees from receivable management services that include the collection of payments from buyers in cash on behalf of the sellers or accepting payments online on behalf of the sellers.
- Advertisement services: The advertisement services that Udaan provides, where the company promotes the product listings to ensure better visibility among the buyers of the platform also contributes to a part of their revenues.
- Interest from credit: Udaan also offers credit to its merchants and traders via its NBFC arm, which helps them meet their working capital requirements. This service of Udaan helps the company generate interests, which thus becomes an important source of revenue for the platform.
- Other value-added services: Udaan offers numerous other fee-based value-added services to the businesses that are registered on its platform. These services consist of packaging and printing labels on products, the printing of invoices, and returns management services, which also add up to the total revenues of the company.
Vibhavari Madki
Udaan - Challenges Faced
Udaan faces several challenges in the competitive business world. Selecting the appropriate things to sell and the most effective means to reach customers is a major challenge. The dynamic nature of the market makes things difficult. It can be difficult for Udaan to persuade companies to use their web platform.
The company wants to use technology and efficient delivery methods to grow, but making these work smoothly on a large scale is tough. In the competition, Udaan has big rivals like Flipkart Wholesale, Amazon Business, and Jiomart Partners, as well as new players like Elastic Run and Shop Kirana. Building a good supply chain, or the way they get products to customers, is a big challenge for Udaan.
In addition, Udaan had to let go of a few workers in December 2023, which raised concerns about the viability of the business. This was their third layoff as they had previously done two in 2022. Thus, in addition to addressing corporate difficulties, Udaan also has internal problems.
Udaan - Funding and Investors
Here's look at the prominent Udaan funding rounds that the company has seen to date:
| Date | Transaction Name | Money Raised | Lead Investors |
|---|---|---|---|
| June 02, 2025 | Series G | $114 million | M&G Investments and Lightspeed |
| October 28, 2024 | Debt Financing | $36 million | - |
| December 14, 2023 | Series E | $340 million | M&G Plc |
| November 24, 2022 | Convertible Note | $35 million | EvolutionX |
| November 24, 2022 | Debt Financing | - | EvolutionX |
| October 27, 2022 | Convertible Note | $120 million | - |
| January 5, 2022 | Convertible Note | $225 million | - |
| January 5, 2022 | Debt Financing Round | $50 million | - |
| November 18, 2021 | Debt Financing Round | Rs 50 crore | - |
| November 6, 2021 | Debt financing round | $10 million | InnoVen Capital |
| September 25, 2021 | Debt financing round | $6.7 million | BlackSoil |
| January 6, 2021 | Series D | $280 million | Moonstone Capital, Octahedron Capital |
Udaan - Investments
Udaan has invested in 5 companies till now.
Below are the details:
| Date | Funding Round | Amount | Company Name |
|---|---|---|---|
| October 3, 2024 | Seed Round | $3.3 million | Furnishka |
| March 12, 2024 | Series A | $4 million | Pizza Wings |
| November 15, 2021 | Series B | $4.5 million | Petpooja |
| September 9, 2021 | Seed Round | - | OckyPocky |
| February 10, 2020 | Series A | $2 million | Petpooja |
Udaan - Acquisitions
Udaan spent most of its life as an investor rather than an acquirer, but that changed in the run-up to its planned IPO. It has made two significant acquisitions, both paid for in its own stock rather than cash: ShopKirana in July 2025 and LYNK Logistics in September 2026.
| Date | Company Acquired | Seller | Enterprise Value |
|---|---|---|---|
| September 7, 2026 | LYNK Logistics | Swiggy | ₹500 crore |
| July 18, 2025 | ShopKirana | Existing shareholders (incl. Info Edge) | All-stock; ShopKirana valued at ~$88.5 million (Info Edge's exchange filing valued its own exit at $23.13 million) |
The structure is worth understanding, because no cash changed hands. Udaan's parent, Trustroot Internet Private Limited (TIPL), is issuing preference equity shares to Swiggy for roughly 2.8% of udaan. Swiggy is separately putting ₹75 crore of fresh primary equity into TIPL for about 0.4% more. Swiggy therefore ends up owning around 3.2% of udaan, and udaan gets both a distribution business and ₹75 crore of new capital without spending any of its own. The transaction is expected to close by 22 October 2026, subject to conditions precedent.
What udaan is buying is a real business, not a bolt-on. LYNK booked ₹668 crore of revenue in the year to 31 March 2026 and works with a network of over 100,000 retail stores. It is also concentrated: Bengaluru, Hyderabad, Chennai and Kolkata account for roughly 75% of its revenue, which points to south and east India rather than the national footprint udaan already has.
"This deal is a strong endorsement of the huge eB2B opportunity and the progress udaan has made in building an efficient and sustainable business," said Vaibhav Gupta, co-founder and CEO of udaan.
For context on the price: LYNK's net assets were also ₹500 crore, so udaan is paying about 1x book and roughly 0.75x revenue, and paying in its own paper rather than cash. For a company that has spent three years cutting losses, that is a notably cheap way to add ₹668 crore of revenue.
Udaan - Financials
| Udaan Financials | FY22 | FY23 | FY24 |
|---|---|---|---|
| Operating revenue | INR 9,900 cr | INR 5,609.3 cr | INR 5,706.6 cr |
| Total expenses | INR 12,978 cr | INR 7,750.8 cr | INR 7,407.6 cr |
| Profit/Loss | Loss of INR 3,132 cr | Loss of INR 2,075.9 cr | Loss of INR 1,674.1 cr |
Udaan Financials FY25
FY25 is the clearest picture yet of what udaan has actually been doing: shrinking on purpose. Operating revenue fell about 20% to INR 4,561.4 crore from INR 5,706.6 crore in FY24, while the net loss narrowed 37% to INR 1,055.4 crore from INR 1,674.1 crore. The company attributes the topline contraction to portfolio rationalisation, pulling back from non-core segments, and says a shift to a regional cluster-based operating model cut core EBITDA burn by roughly 40%.
| Udaan Financials | FY24 | FY25 |
|---|---|---|
| Operating revenue | INR 5,706.6 cr | INR 4,561.4 cr |
| Profit/Loss | Loss of INR 1,674.1 cr | Loss of INR 1,055.4 cr |
That context makes the LYNK acquisition easier to read. LYNK's ₹668 crore of FY26 revenue is equivalent to roughly 15% of udaan's entire FY25 topline: a meaningful chunk of growth bought back in a single deal, and bought with shares rather than the cash udaan has spent three years conserving.
Udaan Expenses
Udaan total expenses have decreased from INR 7,750.8 crore in FY23 to INR 7,407.6 crore in FY24.
EBITDA
| EBITDA FY23-FY24 | FY22 | FY23 | FY24 |
|---|---|---|---|
| EBITDA Margin | -26.16% | -42.89% | -37.13% |
| Expense/Rs of Op Revenue | INR 1.42 | INR 1.38 | INR 1.30 |
| ROCE | -149.3% | -143.81% | -169.05% |
Udaan - Advertisements and Social Media Campaigns
Udaan - Marketing Campaign
Kirana
The advertising campaign emphasizes how simple utilizing the Udaan app is for small business owners. This campaign is a component of Udaan's strategy to revolutionize how kirana shop owners get their daily supplies while also growing its presence in the food-FMCG segment across the nation.
Udaan - Awards and Achievements
Udaan has earned a lot of praise and attention for its outstanding achievements in the business sector. Some notable ones include:
Workplace Excellence (2022): Udaan was honored with the Best Places to Work in India Award by AmbitionBox, reflecting its commitment to creating a positive and exceptional work environment for its employees.
Forbes Accolade (2019): Forbes presented Udaan with the FILA Outstanding Startup of the Year award, recognizing the company's exceptional contributions to the startup ecosystem and its noteworthy performance in the industry.
Unicorn Recognition (2018): Udaan has been recognized as one of the fastest companies to scale to a unicorn, which has achieved the unicorn valuation back in September 2018.
Udaan - Competitors
Here's to mention the top Udaan competitors in India:
Rishabh Rathi
Udaan - Future Plans
Udaan, a business-to-business (B2B) e-commerce company, is planning to expand its presence in the FMCG and HoReCa (Hotel, Restaurant, and Catering) segments and ramp up private label initiatives in the staples category. The company also aims to strengthen its financial position and is preparing for a potential IPO.
In July 2026 it announced a structured financing of about $160 million, a mix of fresh equity, new debt and debt-to-equity conversion, explicitly to strengthen its balance sheet and simplify its capital structure ahead of a listing. Roughly $45 million of that came as fresh debt from the private credit platform of a large global investment manager.
Its September 2026 acquisition of Swiggy's LYNK Logistics fits the same pattern. Paying in shares rather than cash adds ₹668 crore of annual revenue and a 100,000-store distribution network without touching udaan's balance sheet, while the ₹75 crore Swiggy is investing alongside the deal brings in fresh capital. Both are useful things to have on the books ahead of a listing.
FAQs
What is Udaan?
Udaan is a market leader in the B2B eCommerce segment. Founded in 2016 in Bengaluru, Udaan brings manufacturers, traders, retailers, and wholesalers into a single platform.
Who are the founders of Udaan?
Amod Malviya, Sujeet Kumar, and Vaibhav Gupta founded Udaan.
Who is the CEO of Udaan?
Vaibhav Gupta has been announced as the CEO of Udaan in September 2021.
Is Udaan a B2B trading platform in India?
Yes, Udaan is a B2B trading platform in India. The Bengaluru-based B2B ecommerce unicorn is designed to bring manufacturers, traders, wholesalers, and retailers under the same platform.
Is Udaan unicorn?
Yes, Udaan is a unicorn company in India, which is also hailed as the fastest tech startup to receive the unicorn status. Udaan achieved this feat when it raised $225 million in funding in September 2018.
What are some of the Udaan company products?
Udaan makes a wide range of products available to all, which includes rice and rice products, salt, spices, masala, pulses and grains, dry fruits, along with products from several other categories including electronics and appliances, medicines, home and kitchen appliances, hardware supplies, luggage, backpacks and more.
Who are the Udaan competitors in India?
Udaan competitors in India are:
- Bizongo
- Meesho
- TradeIndia
- DMart
- Moglix
- Zoomtail
- Bigtrade
- Tradekosh
Which companies has Udaan acquired?
Udaan's first major acquisition was announced on 7 September 2026: it agreed to buy LYNK Logistics, Swiggy's FMCG retail distribution business, at a ₹500 crore enterprise value. The deal is paid in udaan shares rather than cash, leaving Swiggy with roughly a 3.2% stake in udaan. Completion is expected by 22 October 2026.
Who are Udaan investors?
Some of the prominent Udaan investors are Microsoft, DST Global, Lightspeed Venture Partners and more.
