Udaan B2B Platform – Business Model, Revenue Model and Services

Udaan is India’s largest eB2B platform, holding about 70% of the country’s market share. The platform is popular among business owners and merchants. The start-up makes the entire trade process a ton simpler in India. It accumulates and brings all the producers, dealers, wholesalers and retailers to a single stage.

It offers a wide range of products across three main categories: Food (staples, fruits, and vegetables), Non-Food (electronics, fashion, home and kitchen products, stationery, and footwear), and pharmaceutical products.

On this platform, all the producers can introduce and create brand awareness of their products in an easy manner. The interested party have the opportunity to choose and get those products at their doorstep.

Additionally, all the retailers and wholesalers can publicise and purchase an item directly from the manufacturers without any constraint of time and place.

The platform has revolutionised commerce for smaller towns and villages by making online trade accessible and easy for retailers. Today, Udaan is spread across 900+ cities, connecting over 30 lakh retailers and 25,000 sellers.

Udaan is preparing for its IPO and planning to list on the stock market in 2026.

Udaan Company Overview (B2B E-commerce Platform)

How did Udaan start?

Founded in 2016 in Bangalore, Udaan was begun by three Ex-Flipkart representatives, Amod Malviya, Vaibhav Gupta and Sujeet Kumar; three founders who started this start-up with a vision to transform the whole trading procedure. 

While working at Flipkart, they realized that despite the company’s strong distribution network, rural areas remained underserved. This sparked the idea of Udaan, and the three aimed to create a platform to connect traders, wholesalers, distributors, and manufacturers in the remote parts of India.

In 2016, the fellow patrons watched and investigated the business market for half a year. Following that, they contacted numerous traders, retailers and producers to talk about the terms and conditions of the B2B start-up. Finally, in the year 2017, the platform’s beta version was launched and made accessible for the general population.

Udaan doesn’t just stop at providing a platform; it also collaborates closely with entrepreneurs, helping them with sales, marketing, and logistics. 

The company has also obtained a Non-Banking Financial Services (NBFC) license, allowing it to offer financial support to small businesses.

Udaan Funding Rounds

Udaan has raised a total of $1.99 billion in funding across 19 funding rounds.

The company received its first investment on November 23, 2016. Its most recent funding came in June 2025, when Udaan raised $39 million in a Series G round.

Udaan- Business Model & How It Works

Udaan’s business model works like a B2B marketplace. It connects manufacturers, wholesalers, retailers, and traders on one single platform and helps them do business easily.

Here, businesses can buy and sell products across multiple categories such as FMCG, electronics, lifestyle, and more, all at good prices.

For sellers, the process is very simple. They can just sign up with minimum details and quickly list their products using easy-to-use catalogue tools.

Buyers can browse products, compare prices, and place orders directly through the app.

For deliveries, Udaan uses its in-house logistics network, udaanExpress, and also works with trusted courier partners across India. This ensures that products are delivered safely and on time, even to smaller cities and towns.

Services offered by Udaan

Udaan provides numerous services:

1. Quick Doorstep Delivery: Ensures products are delivered safely to retailers.

2. Credit facility: Offers credit up to ₹25 lakhs to small and medium businesses

3. Wide Range of Products: The platform offers a wide range of products from leading 1000+ national and regional brands. 

4. Hassle-Free Returns: A simple and reliable process for product returns.

To keep buyers and sellers engaged, Udaan has built a robust logistics network that efficiently manages deliveries ranging from 9 to 15 kilograms of goods. 

It also uses advanced data to understand customer purchasing habits, like order quantities, frequency, and preferred products, allowing the company to optimise its services further.

Udaan Revenue Model: How Udaan Earns?

The revenue streams of Udaan are:

1. Commission on Purchases

Udaan start-up primarily generates revenue through commission expenses on exchanges made by dealers. When retailers buy products from manufacturers listed on Udaan, the platform charges a commission. 

2. Advertisements

Manufacturers can pay Udaan a fee to list their products on the platform. This helps them reach more retailers who can purchase their goods.

3. Logistics Fees

The platform also offers warehousing services where vendors or manufacturers can store their products. They have to pay a fee for this service, which helps them deliver orders more quickly and efficiently. 

Additionally, Udaan also charges vendors and manufacturers for delivery charges. These costs are added to the product price when a buyer places an order. The sellers are responsible for covering the shipping expenses to deliver their goods to buyers on the platform.

4. Credit Facility

Another source of revenue for Udaan is the interest earned by the platform by financing its retailers and wholesalers. 

Udaan understands that wholesalers often provide goods on credit to their loyal retailers. To support this, Udaan introduced a credit facility through its UdaanCapital Programme. This program allows retailers to buy more products on credit if they have a good track record on the platform.

The platform also provides loans to help merchants meet their working capital needs. Udaan offers this credit through its NBFC arm. In return, Udaan earns revenue by charging interest on the credit provided.

Competitors of Udaan

1. IndiaMart

2. Bizongo

3. Moglix

4. Meesho

5. TradeIndia

Udaan’s Most Popular Ad Campaign

Udaan start-up initiated a new promotional advertisement campaign to make its presence at a huge scale. The slogan of the recent ad campaign “Khole Manafe ki Shutter” gained much popularity among the audience. The hashtag #kasamcustomerki draws the attention of the retailers and shopkeepers towards the Udaan application.

They can install the app on their smartphones and get the benefit of all the offerings provided by Udaan Start-up Company. Complete trade procedure can be completed on a single app-including exchanging of products, getting credit and loans, etc. The start-up advertised the campaign through TV and digital platforms and tried to connect personally with the audience.

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Udaan – FAQs