Udaan Rebuilds Growth Story as Losses Narrow, Revenue Holds at Scale
Udaan, one of India’s leading B2B e-commerce platforms, is entering a more disciplined phase of growth as it sharpens its focus on essentials, trims non-core businesses, and works toward profitability. Founded in 2016 by Sujeet Kumar, Amod Malviya, and Vaibhav Gupta, the company was built to solve deep supply-chain inefficiencies in India’s fragmented wholesale market.
The startup has remained in the spotlight in 2025 and 2026 after fresh funding, a stable valuation, and improving loss numbers. In June 2025, Udaan raised $114 million in a round led by M&G Investments and Lightspeed, while maintaining a valuation of about $1.8 billion. In FY25, it reported a 37% decline in net loss to Rs 1,055 crore, even as operating revenue fell to Rs 4,561 crore after the company exited several non-essential categories.
Founded by Three Former Flipkart Executives
Udaan was founded by three former Flipkart executives — Sujeet Kumar, Amod Malviya, and Vaibhav Gupta — who brought experience in commerce, technology, and operations to the startup. Their goal was to create a digital wholesale platform that could make procurement easier for small businesses across India.
The company’s early pitch was simple but ambitious: use technology to connect manufacturers, wholesalers, and retailers more efficiently. That vision helped Udaan become one of India’s most talked-about B2B startups and gave it strong brand recall among merchants and investors alike.
How Udaan’s Business Model Works
Udaan operates as a digital B2B marketplace rather than a consumer e-commerce site. It connects sellers and buyers, supports logistics, and provides credit-linked services that help small retailers manage inventory and working capital more effectively.
Its revenue streams have traditionally included commissions, logistics fees, advertising, and interest income from lending-related services. This makes the platform more than a simple marketplace, because it participates in both trade facilitation and supply-chain execution.
Financial Performance and Strategy Shift
Udaan’s financial journey reflects the reality of building large-scale B2B infrastructure in a competitive market. The company’s FY25 operating revenue stood at Rs 4,561 crore, down from Rs 5,706.6 crore in FY24, while consolidated loss narrowed to Rs 1,055.4 crore from Rs 1,674.1 crore. Management attributed the revenue decline to the exit from non-core segments such as lifestyle, general merchandise, home, and kitchen, while increasing focus on groceries and essential items.
That shift signals a clearer strategy: fewer categories, tighter execution, and better unit economics. For a B2B platform, essentials can offer more frequent ordering, stronger merchant retention, and better inventory movement than discretionary categories.
Funding Momentum and Valuation
Udaan’s investors continue to back the business despite the tougher funding climate. The company raised $75 million in February 2025 at a flat valuation of $1.8 billion, and added another $114 million in June 2025, again at the same valuation. The repeated funding rounds show confidence in Udaan’s long-term market position, even if valuation growth has slowed.
The company’s latest funding is expected to support expansion in FMCG, HoReCa, and private-label brands, as well as broader operational improvements. This suggests that Udaan is now concentrating on categories where repeat demand and merchant loyalty can create a more durable business model.
Competitive Position
Udaan competes in a fast-changing B2B commerce market that includes digital platforms, offline distributors, and large retail supply chains modernizing their own systems. Its advantage lies in combining commerce, logistics, and credit within one platform, which can be especially useful for small retailers that need speed and flexibility.
At the same time, the model is capital-intensive and operationally demanding. Udaan has to manage delivery performance, collections, and category economics carefully if it wants to keep reducing losses while maintaining growth.
Outlook for the Next Phase
Udaan’s next stage will likely be defined by discipline rather than aggressive expansion. The company has the advantage of experienced founders, stronger investor support, and a large market opportunity in India’s wholesale ecosystem. But to convert that into lasting value, it must keep its focus on essentials and improve profitability.
The latest numbers suggest that the company is moving in that direction. If the strategy continues to work, Udaan could emerge as one of India’s most resilient B2B commerce platforms in the years ahead.