26-month old B2B Marketplace Udaan is all set to become India’s fastest Unicorn. Founded by ex-Flipkart employees, and backed by a Russian billionaire, Udaan has announced its latest round of funding, which will help them to breach the magical figure of $1 billion valuations.
What exactly does Udaan do? And who all are funding it?
Udaan: The Flight of Success!
Co-founded by Vaibhav Gupta, Amod Malviya and Sujeet Kumar, Udaan has surprised everyone with its success, all in a span of 26 months.
In their latest round of funding, Udaan will be infused with $225 million from existing investors: DST Global and Lightspeed Venture Partners’ global fund.
Once that happens Udaan’s total valuation will rise to $1 billion, thereby becoming India’s fastest Unicorn.
Investment History Of Udaan
Udaan’s first investment came in from Lightspeed, two years back, when they invested $10 million into it.
In February, they raised $50 million from Lightspeed and Apoletto Asia, which is the personal investment arm of Russian billionaire Yuri Milner, founder of DST Global.
As per some reports, Udaan was expecting to raise more funding after December from new investors. But looking at the growth trajectory, and the scope of $700 billion B2B market in India, existing investors pitched in with $225 million of fresh funding.
Udaan’s Stunning Growth
As of now, Udaan is churning out revenues of Rs 300 to Rs 400 crore every month, and this has helped them to raise the valuation 12-times in the last one year.
There are 130,000 to 150,000 sellers on Udaan, from all over the India who are offering products such as apparel, electronics, staples and fast-moving consumer goods to wholesale buyers.
Very soon, categories such as home and kitchen, office supplies, industrial goods, and fresh fruits and vegetables will be added.
Udaan has an in-house logistics team which picks up the products from 80-100 cities, and delivers them across 800 cities and towns in India.
What Is The Secret Of Udaan’s Success?
While food delivery app Swiggy, messenger app Hike and mobile advertisement platform InMobi took 4 years to become Unicorn, Udaan took just 26 months.
The secret can found in the history of its founders: While co-founder Sujeet Kumar was senior operations executive at Flipkart running the logistics unit Ekart and WS Retail, another co-founder Vaibhav Gupta handled product management and finance.
Amod Malviya, the third co-founder was the Chief Technology Officer.
Very soon, Udaan plans to launch their own supply-chain solution, which will involve creating massive warehouses to store inventory.