Soaring to new heights: Udaan Success Story

Udaan Success Story

Udaan Origins:

Udaan India was founded in 2016 in Bangalore. The Udaan startup founders are three former employees of Flipkart, Amod Malviya, Vaibhav Gupta, and Sujeet Kumar. At Flipkart, they held the position of Senior Vice President, Logistics Executive, and Chief Technology Officer, respectively. Having experience at a leading eCommerce firm under their build helped propel the Udaan success story to reach where it is today. 

The Udaan Business Model:

Bringing together manufacturers, traders, retailers, and wholesalers into a single B2B platform is the aim of the Udaan business model. The three main verticals in which Udaan operates are – food (staples, fruits, and vegetables), non-food (electronics and fashion), and pharmaceuticals. 

Udaan Revenue Streams:

Every business entity is formed with the aim of being financially viable. To that end, the multiple revenue streams pursued are intrinsic to the Udaan success story. Udaan’s revenue has been steadily increasing to reach a lofty Rs 978 crore in FY20-21 from Rs 46.3 crore in FY19-20, according to Moneycontrol

Some of these would be:

Revenue from Logistics: 

Every eCommerce firm needs to have a good logistics network. Udaan has effectively invested in logistics and made it a vital source of revenue.

Wholesalers and retailers selling their products to the end-user are charged a delivery fee for the logistics services it provides. The company charges for the delivery of goods from the seller to the customer and vice-versa if returns are to be picked up from the customer. 

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Warehousing Services: 

Any good eCommerce firm needs to maintain a good warehousing and storage system. Having one will ensure faster delivery of goods to the buyer. Quicker order turnaround will elicit a high re-order rate from the customer. 

Advertising Services: 

Advertising services are an add-on provided by Udaan. In this case, the company promotes any product listing to gain better visibility among potential customers. Doing so will help the buyers obtain more revenue as it improves reach. 

Other Value-added Services: 

Udaan even offers many other fee-based value-added services to the merchants on its platform. Udaan provides many options to make dealing with customers convenient and more streamlined. These vary from printing labels and generating invoices, to managing product returns.

Udaan’s Investors:

Udaan has so far managed to raise a staggering $1.5 Billion in funding over its many rounds. The software giant Microsoft has joined other investors like Noumara and Arena Investors in putting their money in Udaan, which has helped to buoy its valuation to slightly over $3 billion. 

Helped by an unprecedented funding boom, Udaan’s could be an industry bellwether and determine the future of many of India’s startup executives and investors.


Udaan was initially a logistics company. This firm’s aspect helped the startup to gain a foothold in the market. It now operates across 900+ cities and 12,000+ pin codes through its logistics arm Udaan Express.

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