Udaan Business Model [How Udaan Earn Money]

Shyam Kumar July 29, 2020January 19, 2023 0 Comments

Udaan Case Study. Company info – Udaan Business Model – How Udaan Earn Money

Udaan Company info:

Company	Udaan
Year Founded	2016
Founder	‎Amod Malviya, Sujeet Kumar, Vaibhav Gupta
CEO	No one is CEO
Company Type	Private
Headquarter	Delhi, India
Valuation (2020)	$2.8 Billion
Number of Employees (2020)	6,048+

What is Udaan:

Udaan is a Business to Business (B2B) online marketplace to connect wholesalers, manufactures, retailers, traders on an online platform. This platform is the app of Udaan. Using this platform wholesaler, and manufacturers sell their products to different retailers.

Udaan is a combination of the marketplace (for retailers, manufacturers, and wholesalers), logistics, and lending money as credit.

Also Read: How to Start a Startup [Complete Guide]

Udaan Business Model:

The business model of Udaan is based on B2B i.e. Business to Business, where manufacturers and wholesalers sell its products to different retailers. Udaan provides sellers and buyers a perfect platform to make this sell happen by giving them the service of an online platform to list and sell the products, secure payment gateway, perfect logistic system, credit to the buyer, and technical support if required.

The best part with Udaan is that they provide Credit to the verified buyers (if certain conditions are met). For the first time, credit of INR 10,000/- is given without any interest charge and then the limit of credit will be increased to a maximum amount of INR 2,50,000/-.

Key Partners:

Manufacturers
Wholesalers
Retailers
Traders
Logistic

Channels:

Android App
iOS App
Website

Cost Structure

Technology Development
Logistic Cost
Employees Salary

Udaan’s competitors

BigTrade
TradeKosh
IndiaMART
Jumbotail
ShopKirana
Wydr
Moglix
LockTheDeal
ZoomTail

How Udaan Earn Money:

Revenue Model of Udaan stated below is based on a few credible sources as we are waiting for the reply of the Udaan team to get the exact revenue model.

Revenue Model of Udaan is based on the commission of the sale or purchase made. They do charge around 15% – 18% from the purchaser when they make a successful purchase after finding their best suitable products. Though, this percentage varies as per the products.

They also charge a certain fixed amount of money depending on the products and its quantity for the logistic work from the buyers.

As of now, Udaan doesn’t charge any interest on the money given as credit to the buyers for the purchase of products from their platform. Credit given to the purchaser is interest-free.

Also Read: How to Get Funding For Startup [8 Most Reliable Ways]