 "On road to IPO, Udaan saw sales of over 2.25 billion products in 2023")
Initial public offering-bound business-to-business (B2B) e-commerce firm Udaan, India’s largest electronic B2B (eB2B) platform, announced that over 2.25 billion products, serving more than 23 million orders, were shipped by the platform in calendar year 2023 (CY23).
These orders were dispatched across states. Under the essentials category (fresh, fast-moving consumer goods, or FMCG, staples, and pharmaceutical), the platform fulfilled 20 million orders, with nearly 1 million tonnes of products shipped.
Over 70 million products were shipped under the discretionary category (electronics, general merchandise, and lifestyle), covering over 3 million orders. During this period, 900 sellers on the platform achieved sales worth Rs 1 crore each, while close to 600 sellers conducted business worth Rs 2 crore on the platform.
“The large volume of orders and a significantly higher repeat purchase rate highlight the preference Udaan enjoys among its retailer partners,” said Vaibhav Gupta, co-founder and chief executive officer of Udaan.
“Encouraged by our solid performance, we will continue to work towards strengthening our market position and capitalising on the huge $150 billion opportunity that the Indian eB2B market offers,” he added.
By harnessing the power of technology to elevate kirana commerce, Udaan encourages the digitisation of payments among small retailers and kiranas. In CY23, 22 per cent of retailers on the Udaan platform adopted digital payment methods.
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In CY23, Udaan witnessed a surge across the essentials category, with a repeat purchase rate of over 90 per cent. About 504 million biscuit packets, 437 million personal care units, and 251 million beverage units were shipped through the platform. This was followed by ready-to-eat products, with about 87 million noodle packets and 15 million beverage units. In addition, around 72 million namkeen items and 50 million coffee packets were sold in CY23. The highest demand for these products came from Uttar Pradesh, Delhi, Karnataka, Maharashtra, and Telangana.
Over 960,000 tonnes of food products (staples and FMCG) were shipped through Udaan in CY23. 790,000 tonnes of staples, including 430,000 tonnes of sugar and oil, and over 360,000 tonnes of rice, pulses, and flour, were shipped across Tier-I, -II, and –III towns and cities. In addition, over 170,000 tonnes of FMCG products were shipped through Udaan.
In CY23, Udaan’s electronics category catered to 1.3 million orders, with over 31 million products shipped through the platform. This included over 21 million accessories, 7.5 million consumer electronics, and 2.5 million mobile handsets.
A large volume of orders for electronics products came primarily from Karnataka, Assam, and Bihar. Retailers in the general merchandise and hardware category placed orders for over 7.5 million products. The demand ranged from 4.7 million plastic products, appliances, and cookware items to 1.7 million metal utensils, and 1 million cycles, luggage, toys, and baby care products.
Udaan’s lifestyle category comprising clothing, accessories, and footwear facilitated the shipping of over 19 million products, catering to 1 million orders in CY23. Around 3 million men’s T-shirts and shirts, 6 million pairs of footwear, and 1 million women’s wear were shipped across India.
Also, about 900 sellers achieved the landmark of selling products worth Rs 1 crore through the Udaan platform during CY23. Around 600 sellers achieved sales of over Rs 2 crore during this period, of which 500 sellers were from essentials and 100 from the discretionary category.
In CY23, Udaan raised $340 million in Series E financing. The funds would help it further strengthen customer experience, market penetration, and strategic vendor partnerships.