Udaan, an Indian e-commerce firm, raises $585 Million from its investors named Tencent Holdings Ltd., Altimeter Capital, GGV Capital, and Citi Ventures. Surprisingly, they have been able to accumulate such a whopping sum despite having no CEO as of now yet witnessing a remarkable growth.
The increasing competition and the rise of online shopping platforms, small stores like the corner Kirana stores have lost their edge. The aim of Udaan is to digitalize these small setups, helping them to boost up in the market like others.
The secret behind the success of this idea is that they source directly from small scale manufacturers, mill owners, and farmers to be given to the retail shops, street vendors, restaurants and even offices.
They have now connected with 20,000 sellers to 3 million retailers across the country to start trading with all kinds of goods including fruits, vegetables, toys or even apparel.
The inspiration behind this model occurred to the three thirty-nine-year-old co-founders. Hail from small towns, they had to get their daily needs from the stores nearby during their childhood.
There was no supermarket concept in existence as such. They decided to cut down the commission that exists in between. Hence, their childhood experience led them to this novel idea.
The co-founders said in an interview that they wanted to work on the core problem faced by India due to the competition. They further added that the 3 million stores include small enterprises, such as small retail stores, restaurants or even the markets.
Udaan makes monetary support easy, such as lending, payment, and logistics. Moreover, they are targetting small towns as of now. According to them, the amount they raised will be used to grow categories, build a payment platform, and delivery strategies.
In the midst of the technological advancements, startups such as Udaan have emerged as a ray of hope for the small scale industries. With the help of Udaan, the small scalers will be able to protect their existence to a large extent.
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