Udaan, B2B ecommerce platform based out of Bengaluru is in the limelight for it’s strong leadership in the B2B segment. A million dollar question is on how they could achieve $2 billion of gross annualised sales and invests over $10 million a month on building its network, which is presently at two million kiranas across 900 cities and towns.

As per the valuation report on September 23, 2019 , Udaan is valued at $7.5 billion or Rs 53,365.45 crore based on projected cash flows and equity infusions. It is the fourth-highest valued startup right after Paytm, OYO and Byju’s.

The success mantra of team Udaan includes Vaibhav Gupta, Amod Malviya and Sujeet Kumar, they were formerly with Flipkart, understood the big picture of India’s retail industry. They could identify the need of the hour of the market with right kind of solution by bridging the gap by connecting the B2B segment which connects Bharat. The ecommerce marketplace, focussed on small and medium retailers across the country. He not only saves on time but he is also able to get the ingredients at competitive prices.

Udaan was incorporated in June 2016 and launched its operations one year later, and created waves in the startup world by achieving unicorn status in September 2018 - a private valuation of $1 billion and above in the shortest possible time. It connects retailers with wholesalers and traders who sell products ranging across categories from electronics and apparel to grocery and fresh produce.

As Per Martin Lau, President of Tencent, said: “Udaan’s unique approach can enhance the capabilities of millions of retail stores across India. It represents a powerful example of how technology can empower the business of small merchants, improve the efficiency of industries and bring benefits to consumers.”

The business model is very simple to use. It is enabling this business to business (B2B) transaction, bringing together all participants onto a single platform - be it the wholesaler, distributor, producer, and the small retail shop owner. All this comes on a single app on the smartphone.

We want to democratise the entire chain so that there is transparency throughout the process while delivering on efficiency,” says Sujeet Kumar.

Focussed on horizontal B2B ecommerce, the platform currently helps SMEs like small manufacturers, brands, mills, and farmers to sell their products across the country at a low cost.

At the time of starting the venture, as an NBFC vertical in 2018, the company has disseminated loans ranging from Rs 10,000 to Rs 2 lakh to around one lakh small merchants on the platform. Now it competes with sector giants such as Amazon and Walmart (US), Alibaba (China) and Reliance Industries, which are looking at aggressive expansion in the India market.

Udaan’s official website claims to have 20,000 sellers and 10 lakh retailers from 900 cities and towns in India. With more than 15 lakh products available on the website.

The investment they have from Tencent, Altimeter, Footpath Ventures, Hillhouse, GGV Capital, Citi Ventures along with the existing investors Lightspeed Venture Partners and DST Global touched above $2.7bn valuation on just 3 years.