How Did Udaan Become One of The Most Innovative Companies in India?

Udaan is a B2B platform that taps on the behind the scene process of a market involved in any exchange or e-commerce websites like Amazon or Flipkart.

The value of an idea lies in the use of it. And all it takes is one person, one idea and the passion and effort to convert that idea into reality. The start-up culture seeped into India a while back in time and today, it has sown its roots deep into the entrepreneurial status quo giving birth to innovations with every passing day.

Young leaders and entrepreneurs today have the opportunity to explore new innovative avenues providing solutions to problems that vex consumers all across the globe. So how did the B2B start-up become Udaan one of the most innovative companies in India?

What is Udaan? 

Udaan is a B2B platform that taps on the behind the scene process of a market which essentially involves back-end work in e-commerce websites like Amazon or Flipkart. For instance, merchants selling the product have to go collect the product and deliver it to a Flipkart storehouse. And with increasing orders, the process can become cumbersome and confusing. To ease the process, Udaan came up with its platform to make trading in terms of logistics and sales more convenient and simpler by connecting small and medium retailers across the country. This very basic idea in a disorganized market resulted in Udaan becoming the disruptor in the industry.

How did Udaan come up with the idea? 

Outside the scope of the organised sector, several small retailers across the country were unaware of technology, were duped by middlemen, experienced inefficient prices, lacked access to markets, had poor logistics infrastructure and lacked financial transparency. Here enters Udaan as they try to bring together all participants like a wholesaler, distributor, small and big producers within a single platform enabling B2B transaction through an app on the smartphone.

With the proliferation of the internet, e-commerce growth, digital payments, uniform taxation system via GST and advent of technology like artificial intelligence, Udaan had a positive push in becoming the disruptor in the B2B sector. Understanding the inefficiency in the supply chain, Udaan took advantage of these factors and provided a fair platform to connect all participants in the retail industry chain.

The opportunity in front of Udaan is huge. Unlike fast-moving consumer goods companies that focus on a few products, Udaan has a much wider choice in terms of goods available on the platform. A shop owner can get everything from toffee to a 50 kg rice bag and they get to save a larger proportion of their income than before. Sellers also get to reach a larger scale of consumers. According to Udaan, they transact at least 6000 tonnes daily on an average across India, including perishable goods. 

What is next for Udaan?

Even without an internet-dependent population, Udaan gained a lot of popularity in Uttar Pradesh, Bihar, Orissa, Chhattisgarh and also in Northeast India. Udaan has already established itself in the market and aims to build a pan-India online network. The Bengaluru-based firm is valued at $7.5 billion as of 2020, making it the fourth most valued start-up in India after Paytm, OYO and Byju’s. By building expertise in every category, they strive to bring a viable solution for producers as well as consumers.

What’s in it for start-ups ?

A major reason behind Udaan’s success is that in the initial period of operations, they provided logistics at subsidized rates of which provided them with ample market exposure. The founding team of experts and people with knowledge as they worked in Flipkart before. As more ex-Flipkart employees joined, Udaan could improve their productivity and tinker with creativity and innovation.

The company provides a unique solution to retailers and wholesalers via a hassle-free online platform. The success of a start-up often depends on the uniqueness of the product or service it provides and how it changes the lives of consumers and producers. In the start-up world, innovations often carve the path for the success of your company.

Smruthi Krishnan
Smruthi Krishnan
Smruthi interviews and writes on inspiring entrepreneurs and the success stories of start-ups. She is currently pursuing Economics major from Delhi University.



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