Udaan could raise debt financing
COVID 19 has seen a severe drop in economic activity. People were stuck and locked inside their homes. National borders were closed and no movement was allowed. There were reports that the national economy had fallen at a drastic rate and that it would take a long time to recover from the aftermath of the deadly COVID 19. Many businesses suffered so much during this time that they had to shut down their operations permanently. Many startups have been shut down even before starting their businesses due to the lack of clients. Many successful companies in order to continue their operations changed their course of activity during the lockdown, such as Amazon and Flipkart for a period of time were involved in the simple delivery of necessary goods. Swiggy and Zomato, when restaurants were not operational, took care of delivering all the necessary staples like dough. All this has been done so that customers do not leave their homes.
The economy is now recovering. The lockdown has been lifted and businesses are on track to recover from the aftermath of the lockdown and COVID. Customers are now coming back to shop. Now we can see and read the latest news on startup financing, mergers and acquisitions and acquisitions on a daily basis. And an important point that needs to be noted here is that startups with a tech presence have been successful during this time and only those startups have a future in this world.
A startup has been put in the spotlight because of the funding it could receive. B2B e-commerce startup Udaan is exploring different ways to raise capital, as announced on August 9, 2021. The startup is also open to raising capital through debt capital from global investors. It is also looking to go public within the next 18-24 months.
About the startup
Founded five years ago by Flipkart executives Sujeet Kumar, Sachin Bansal, Vaibhav Gupta and Amod Malviya, Udaan is the country’s largest platform for businesses and traders. It has a powerful business app for quick and easy purchase. The app provides the best deals and offers, easy navigation and ordering. The startup faces stiff competition from physical stores like Reliance and Metro Cash and Carry, and even online platforms Amazon and Flipkart. The startup’s platform has over 30 lakh retailers, 25,000 vendors in over 900 cities.
Some of the features provided by the boot are-
•Great wholesale prices
•Fast home delivery
•Wide range of top sellers and brands
•Credit up to INR 5 lakh
History of the startup
Starting a business in an uncharted B2B space was a huge challenge for the co-founders.
According to the founders, the journey started together and the investments started to arrive. The growth was visible and the capital seemed real, and it proved that the model had potential. The problem that the startup had to solve was from the point of view of the supply chain. The presence of the Internet was not abundant, so resellers who had potential and were considered good did not use the Internet. But the internet had reached the village area and Whatsapp was in use so now was the perfect time to start.
The startup based in Bengaluru for the first six months of 2016, was simply analyzing the market. The co-founders during this time were in contact with retailers and suppliers, where they tried to understand what their roles were. Then after all the research they launched in November 2016, but for seven months it was only open for retailers and manufacturers. Then in 2017, the startup was opened to customers.
The startup today has a gross merchandise value of around $ 3 billion. The startup’s active users are currently between 0.5 and 1 million. The average ticket price on the platform is currently around the INR 8000 mark.
What are the founders saying?
Sujeet Kumar made a statement saying the startup plans to expand its portfolio and expand and increase its logistics. He added that the startup currently serves clients in around 12,000 areas, which is a pretty good number as it represents 70 to 80 percent of the population. The startup now aims to expand its food business from 100 cities to 200 cities.
The involvement of e-commerce in the B2B market is only 1%, and the startup claims to hold 80% of that share. The country’s policies are flexible enough to help small and medium-sized businesses grow. The startup has a good positive report and we are sure that with the funding it will reach higher height. We want nothing more than a good and successful future.