UDAAN Business Model is becoming increasingly well-liked among retailers and company owners. The start-up considerably simplifies the whole trading process in India. All producers, distributors, wholesalers, and retailers are brought together under one roof.
Producers may easily showcase and build brand recognition for their products on this platform. The interested party has the option to select things and have them delivered right to their door. Additionally, all the retailers and wholesalers can publicize and purchase an item directly from the manufacturers without any constraint of time and place. Let’s take a quick look at Udaan- before getting into the UDAAN business model in detail.
UDAAN Business Model overview-
|Type of Industry
|Trustroot Internet Pvt. Ltd
|Amod Malviya, Vaibhav Gupta (CEO), Sujeet Kumar
|Bengaluru (Karnataka, India)
|Market Valuation (FY22)
|$3.1 billion (Rs.25,680 crore)
|Net Profit/Loss (FY22)
|Loss of Rs.3,075.80 crore
|Lazada, Tradyl, Infra Market
How Udaan Started?
The Udaan startup was established in 2017 and has experienced continuous growth ever since. The startup was formed by Vaibhav Gupta, Amod Malviya, and Sujeet Kumar, three former Flipkart salesmen, to completely change the trading process. Thanks to the Udaan start-up, many people got the opportunity to improve their standard of living by earning more money.
Following that, they communicated with numerous producers, merchants, and wholesalers to go over the terms and circumstances of the business-to-business startup. In the end, the public was able to access the platform’s beta version in 2017. Presently, Udaan has over 7000 backlinks pointing to its seventy-four thousand pages, and over 333 thousand views each month come from organic sources.
Working Strategy: How Does Udaan Business Model Work?
UDAAN Business Model employs a particular operational approach to promote business-to-business commerce in India. It uses technology to run on a low-cost business model. It is not only economical, but it also facilitates business growth, trading, and scaling for all involved parties. Within Udaan’s network are approximately
- 3 million registered users
- 25,000-30,000 sellers
- 900+ cities covering 12,000 pin codes
- 1.7 million retailers
Every month, it processes more than 4.5 million transactions. It makes it possible for small producers, farmers, and businesses to advertise and sell their goods across the nation. And that too for a minimal price with an open and safe payment method.
Udaan’s operation is explained as follows:
- Registration: Sellers, buyers, and service providers need to register and create an account before they can utilize the Udaan platform. They provide vital information such as the address, product categories, and company details.
- Product Listing: Vendors list their products on the Udaan platform with complete information, including product images, descriptions, prices, and available quantities. They can exhibit a wide range of products in several categories.
- Buyer Discovery: The Udaan platform is explored by customers to find products that satisfy their needs. Users can walk through categories, apply filters, look for particular products, and get comprehensive details about vendors and their offerings.
- Ordering And Negotiation: Customers can place orders for the items they want through the Udaan platform. The app-based pricing mechanism gives you better control over pricing. They have the option to negotiate conditions and prices with vendors to guarantee an honest and transparent transaction procedure. Udaan facilitates direct communication between buyers and sellers to ease negotiations.
- Logistics And Fulfillment- Udaan Express: Once an order has been verified, Udaan manages the order fulfillment and logistics process through udaanExpress. It coordinates shipping, packing, and warehousing with logistics partners. Udaan promises that the goods will arrive at the buyer’s designated address on time.
- Payment And Financing- Udaan Capital: Buyers and sellers can use Udaan’s secure payment channel to complete deals. Furthermore, it offers lending opportunities through its fintech business, udaanCapital. It provides qualifying businesses with short-term loans and supply chain financing. This guarantees that vendors get paid on schedule and makes it easier for buyers to manage their cash flow.
- Order Tracking And Support: Through the Udaan platform, both buyers and sellers can monitor the real-time status of their orders. They can keep track of the flow of merchandise and be informed about the anticipated dates of delivery. To help with any questions or concerns that may arise during the trading process, Udaan also offers customer support.
- Analytics And Insights- SaaS Offerings: Udaan is a provider of SaaS (Software as a Service). It generates insights for buyers and sellers using data analytics. It provides data analytics on product performance, market trends, and consumer behavior. This data-driven strategy can help businesses optimize their operations and make well-informed decisions.
- Mobile Application: Udaan’s iOS and Android mobile applications are its primary means of functioning. The user-friendly architecture of the app makes it easy for both buyers and sellers to navigate. You may place orders, monitor shipments, look at products, and handle your accounts on this portal.
- In-App Advertisements: According to Udaan, manufacturers and distributors are welcome to use this platform to advertise their products. In a nutshell, it allows the retailer/buyer to select an item, place an order with sellers, and have the merchants use udaanExpress to package and send it. Manufacturers, distributors, or wholesalers could be the sellers.
Revenue Sources: How does Udaan Business Model make money?
This is the much-anticipated portion of the article. The most frequently asked question after a successful startup is what the company’s revenue streams are. The Udaan business model is no different. It makes money through a variety of avenues because it is a B2B platform. A few of the important ones are:
- Commissions And Service Fees: Commissions and service fees collected by Udaan are paid by sellers and deducted from the total transaction value. When a seller utilizes the platform to complete a transaction successfully, Udaan receives payment. With the help of this business plan, the UDAAN Business Model has an incentive to boost supplier sales.
- Logistics Services: Through the Udaan platform, registered merchants can access storage and warehousing services. However, this comes with a price. Working with logistics companies, Udaan manages packaging, warehousing, and last-mile delivery. UDAAN Business Model charges sellers and buyers for these services, earning money on top of the logistics costs.
- Financing And Credit Facilities: Financing alternatives are provided by Udaan’s fintech company, Udaan Capital, to approved buyers and sellers. Supply chain financing and short-term loan solutions fall under this category. By charging interest or other fees for these financial services, Udaan generates revenue.
- Advertisements: Manufacturers and distributors can use the UDAAN Business Model to advertise their products, as you read in the section above. Put another way, it gives sellers and brands the chance to advertise their goods or services to specific B2B customers. Udaan can sustain itself financially by running ads on its website. Udaan gains financial advantages from the advertisements on its platform.
- Value-Added Services: Udaan provides businesses with value-added services to improve their trading experience. Data analytics, market insights, and other specialist solutions are some of these services. By charging for these value-added services, Udaan can generate extra income.
Udaan thus hopes to develop a sustainable business model while offering its B2B clients useful services by broadening its sources of income.
Marketing Strategies of Udaan Business Model
You must showcase your startup to the media to set it out from the competitors. For this reason, without a description of marketing techniques, the Udaan business model is lacking. Udaan employs several primary marketing techniques, including:
- Television Commercials: Udaan is represented by actor Pankaj Tripathi as a brand ambassador. He makes a lot of money through the UDAAN Business Model and draws customers to his business by portraying “Dimple Bhaiya” in the video advertising. They exhort small business owners to employ these ads on Udaan to boost their revenue. They persuade them to start their businesses with an emphasis on digital platforms.
- Digital Marketing: Entrepreneurs today mostly rely on this marketing method to reach their target audience. To reach its target market, Udaan Business Model makes extensive use of digital marketing. It invests in email marketing, social media marketing, search engine optimization (SEO), and online advertising to increase brand exposure and engage with potential users. Udaan can effectively use digital platforms to target specific industries and demographics.
- Targeted Events And Trade Shows: The founders of Udaan participate in industry-specific events, trade shows, and conferences to showcase their platform and network with potential clients. Using these events, Udaan Business Model can establish its presence in significant industries, generate leads, and engage directly with the B2B community.
When combined, these marketing strategies increase brand recognition, attract a diverse range of clients and suppliers, and establish Udaan as one of the leading B2B e-commerce platforms in India.
Udaan’s digital marketplace allows businesses to browse products, place orders, and efficiently manage inventories. Additionally, it gives small and medium-sized businesses (SMEs) access to a large selection of goods at affordable costs. UDAAN Business Model uses its vast logistical network to guarantee on-time delivery to recoup its costs from sellers through commissions and fees. Udaan seeks to promote economic growth and change the Indian business landscape by empowering SMEs.