Ever wondered how retailers and traders get their commodities? Naturally from wholesalers. Traditionally, traders in India have relied on offline channels for this purpose. However, Udaan has revolutionised the whole process of commodity buying/selling by introducing e-commerce in this segment. Udaan is India’s largest business-to-business or B2B e-commerce platform, connecting manufacturers, wholesalers, suppliers and retailers. It leverages technology to facilitate efficient sourcing, secure payments and access to new markets for small, medium and large businesses. Moreover, the platform empowers the businesses with a variety of tools for managing inventory, logistics and payments, thereby creating a unified ecosystem for smooth B2B trade. Udaan holds a dominating share of 80% in the Indian e B2B market. How did it achieve this feat? What are its revenue streams? Find out more about the company by reading on.
How Does Udaan Work?
Udaan functions a B2B e-commerce platform which enables direct and transparent transactions, thereby eliminating supply chain inefficiencies. It works on a low cost business model by leveraging technology.
Manufacturers, wholesalers and other kinds of buyers and sellers register and list their products on the app-based platform, compatible with both Android and iOS operating systems. Registration process requires certain information like business details, product categories and location.
Product listing features comprehensive details, including product images, descriptions, pricing and available quantities. Thus, retailers are able to discover products that match their needs, compare prices and purchase in bulk. This eliminates the need for physical sourcing.
App-based pricing system provides better control over the prices. Moreover, the platform facilitates direct communications between the buyers and sellers to negotiate prices and terms, thereby ensuring a fair and transparent process.
Udaan integrates logistics and order fulfillment in its business model through Udaan Express. It works with multiple logistics partners to handle the process of warehousing, packaging and transportation. Consequently, the product are delivered swiftly and efficiently, right to the doorsteps of the buyers.
Udaan offers secure payment gateways to facilitate financial transactions. Furthermore, it offers credit facilities to eligible businesses through its fintech division, Udaan Capital.
Udaan operates an extensive ecosystem. It serves more than 900 cities covering over 12,000 pin codes across India. The platform has over 3 million registered users, including over 1.7 million retailers. 80% of the buyers are small retailers, while 20% of the sellers are manufacturers.
| Company | Hiveloop E-Commerce Private Limited (Official) |
| Establishment Year | 2016 |
| Founder | Amod Malviya, Vaibhav Gupta and Sujeet Kumar |
| Headquarters | Bengaluru, Karnataka, India |
| Industry | e B2B |
| Net Worth | $1.8 billion |
| Revenue In 2024 | $68 million |
How Does Udaan Make Money?
1. Transaction Commissions and Fees
Udaan charges commissions on successful transactions between buyers and sellers on its platform. A percentage of the transaction value is taken as the commission. It can be anything between 0.6-18%, depending upon the product category and volume. The commission includes fees for platform usage.
2. Logistics Services
Udaan handles end-to-end logistics, right from packaging and warehousing to last-mile delivery. It charges both buyers and sellers for these services in the form of delivery fees for buyers and warehousing and reverse logistics fees for the sellers. The charges are based on product type, quantity and distance.
3. Financing and Credit
Udaan offers working capital loans, trade credits and quick cash options to eligible buyers and sellers through its NBFC arm, Udaan Capital. Revenue is earned from interest and service fees on these facilities.
4. Advertising
Numerous brands and sellers advertise their products and services on the Uddan platform to reach a wider B2B audience. Udaan generates revenue through such advertisements on its platform.
5. Value Added Services
Udaan offers value added services to enhance trading experience for businesses. These services include data analytics, inventory management, cash collection, invoice printing and market insights. Revenue is earned through fees charged on these services.
Latest Developments
Udaan reported over 60% year-on-year revenue growth, 70% rise in daily transacting buyers and 30% reduction in EBIDTA burn in FY 2024. The company raised $75 million in January 2025, followed by $114 million in June 2025, bringing the total funding in 2025 to $189 million.
Udaan acquired ShopKirana, a retail tech startup, in July 2025. This move has strengthened Uddan’s capabilities in kirana store digitisation and supply chain technology for SMEs.
In September 2025, Udaan signed an MoU with Common Services Centres to provide visa processing services for over 100 countries through CSC Safar portal.
