When we read the word ‘UDAAN’, then we might think that it is an Aviation Company, but is not true because it is a start-up started by trio. So, let’s come to the story of this Start-up.
|TYPE OF BUSINESS||UDAAN’ is B2B (Business to Business) E-Commerce platform|
|FOUNDER||Amod MalviyaSujeet KumarVaibhav Gupta|
|Net Worth||In just 26 months it becomes Unicorn Start-up in India with worth of $ 1 billion.|
|Deals with the Products||Electronic, Lifestyle, Home & Kitchen Appliances, Staples, Fruits and Vegetables, FMCG, Pharma, Toys and General Merchandise.|
HISTORY OF UDAAN FOUNDER:
- Amod Malviya (Co-Founder of ‘UDAAN’):
Amod Malviya is a co-founder of UDAAN. He founded udaan in 2016 with other two co-founder. He was the former head of technology department at Flipkart. Amod’s Education Background is B. Tech in Electrical Engineering from IIT, Kharagpur.
- Sujeet Kumar (Co-Founder of ‘UDAAN’):
Sujeet Kumar is a Co-Founder of Udaan. He was a former Senior Executive of Flipkart. He worked as President of Operation, in area such as Supply Chain and Operation. Brain behind and building E-Kart in India was Sujeet Kumar, which becomes backbone of E-commerce distribution. Education Background of Sujeet Kumar is B. Tech in Civil Engineering from IIT Delhi.
- Vaibhav Gupta (Co-Founder of ‘UDAAN’):
Vaibhav Gupta is a Co-Founder of Udaan. He was a former Senior Executive of Flipkart. He has 5 years’ experience of several leadership roles at Flipkart. He had worked in a area of Business Finance and Analytics. Additional to this, He had a 3 year’s prior experience of working in McKinsey & Company consulting firm. Education Background of Vaibhav Gupta is MBA from University of Virginia and B. Tech in Computers Science and Engineering from, IIT Delhi.
AIM OF THIS START-UP:
The Objective behind this is to give the relief to manufactures, wholesaler, and retailers. E-Commerce has come up with revolutionary changes in the market. With this scenario, wholesaler and retailer faced a tough competition with E-Commerce platform like Flipkart, Amazon, Myntra, etc. All three Founders of ‘Udaan’ have come up with the solution to solve this problem by ‘ONE STOP SHOP PLATFORM’. UDAAN is a source of connectivity with Wholesalers, Retailers, Traders and Manufacturers. Like Hindustan Unilever limited, can sell their company protect to all end consumers through strong supply chain distributes, but small manufacturer cannot do so, for this Udaan connect these manufacturers to retailer by single application, so that problem manufacturer can be resolve.
Ideas of Udaan was to scale up the domestic market through E- Platform.
Every business is truly depending upon execution. If execution is perfect than your business doesn’t need to chase for the success. All three founder are experts in their respective field. With this combination, they initial focus on the core areas such as mobiles & accessories and fashion. For this they built strong logistics network throughout India. From logistics support they get to learn demand and supply of the product in the market. They have mainly focused on Tier-1 &2 cities.
HOW UDAAN BECOME UNICORN START-UP OF INDIA?
There are the few reasons for this:
- Technology Factor: Technology become a major factor for their success. With internet connectivity everyone is able to access the accessibility of the market.
- Digital Payment: Through digital payment it become easy to accelerate monetary transaction.
- GST: With the help of GST, it become easy to do transaction between the states.
- Logistics: Fundamental reason of success story of UDAAN is lie on Logistics. By building a strong network distribution in the market, they achieve their goals.
- Value added service: By providing the services like advertising of the product, branding, awareness of the product in the market. It become easy for the identification
HOW THEY MAKE MONEY FROM THIS PLATFORM:
- SUCCESS TRANSACTION COMMISSION
- LOGISTIC SERVICE
- INTEREST ON CREDIT
- VALUE ADDED SERVICE
Udaan has raises a fund through five new investors of $ 200 million debt by issuing convertible notes, this information was disclosed by the chief financial officer – Aditya Pande.
According to ET news, the names of the investors were not disclosed in the note. People aware of the matter said Tor Investment, Arena Investors and M&G Investments were among the new investors.
However, Udaan intend to go for IPO in next 18-24 months, for paying the debt finance, before these investors will have the choice for the flip option from convertible notes to equity prior to IPO.
From the above analyst, it means retailer doesn’t face a competition from giant e-commerce platform. They act upon as like them. Prior to this, retailer has to keep profit margin less due to unfair price of the product due to the several problem and problem is not only rest with the seller but also it has burden for the buyer to pay high price for the product. Therefore, many buyers switch to Flipkart and Amazon E-Commerce platform. Udaan has bring the revolutionary changes in this. Basically, problem faced by manufacturer and retailer was the distribution, credit, branding, etc. Here “Udaan” act as the Mediator to resolve these problems. Currently, Udaan has more than 20 thousand customers, more than 10 lakhs retailers and more than 15 lakhs product.
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