Have you ever wondered where traders and retailers obtain their supplies? Naturally, wholesalers. Traditionally traders in India used offline channels to accomplish this. But, Udaan has revolutionised the entire process of selling or buying commodities by introducing e-commerce into this sector. Udaan is the country’s biggest B2B or business-to-business e-commerce platform that connects wholesalers, producers suppliers, retailers and manufacturers. It uses technology to enable effective sourcing and secure payment in addition to accessing markets that are new for medium, small and large-sized businesses. Furthermore, the platform equips businesses with a wide range of tools to manage their inventory, logistics and payment which create a single environment for seamless B2B trade. Udaan has a dominant share of over 80% of the Indian B2B market. How did it accomplish this success? What are the revenue streams? Learn more about the company’s operations by reading this article.
How Does Udaan Work?
Udaan is a B2B e-commerce platform that allows for clear and transparent transactions, which eliminates efficiency issues in the supply chain. It is based with a low-cost business model that leverages technology.
Wholesalers, producers and all other types of sellers and buyers register and display their items through the app-based platform which is compatible for each of the Android as well as iOS operating systems. The registration process requires specific information such as business information such as the product’s category and location.
The product listing contains all the information that include product pictures along with descriptions, pricing, and quantities. So, retailers are able to locate products that suit their needs, evaluate prices, and make purchases in large quantities. This means that there is no requirement for physical sources.
The app-based pricing system gives you greater control over prices. Furthermore, the platform allows direct communication between buyers and sellers to agree on pricing and terms, guaranteeing transparency and fairness.
Udaan integrates the logistics of order fulfillment and logistics into its business model by using Udaan Express. It has multiple logistics partners to manage the warehousing process packaging, transportation and warehousing. The product is quickly and efficiently delivered directly to the doorsteps of customers.
Udaan provides secure payment gateways for financial transactions. In addition, it provides credit to businesses that are eligible by way of its fintech subsidiary, Udaan Capital.
Udaan has an extensive network. It covers over 900 cities that cover more than 12,000 pin codes across India. The platform is home to more than 3 million members, which includes more than 1.7 million merchants. 80percent of sellers are small-scale retailers and 20% of buyers are manufacturer.
| Company | Hiveloop E-Commerce Private Limited (Official) |
| Establishment Year | 2016 |
| Founder | Amod Malviya, Vaibhav Gupta and Sujeet Kumar |
| Headquarters | Bengaluru, Karnataka, India |
| Industry | B2B |
| Net Worth | $1.8 billion |
| Revenue In 2024 | $68 million |
How Does Udaan Make Money?
1. Transaction Commissions and Fees
Udaan offers commissions for successful transactions between sellers and buyers through its platform. A percentage of the value of the transaction is considered to be the commission. It could range from 0.6-18 percent, depending on the category of the product and its quantity. The commission covers costs for platform use.
2. Logistics Services
Udaan manages logistics from end-to-end starting from packaging and warehouses to last mile delivery. It charges buyers as well as vendors for its services, in the form of shipping fees for buyers as well as the cost of warehousing and reverse logistics for sellers. The prices are based upon the type of product, the amount and the distance.
3. Financing and Credit
Udaan provides working credit for trade, capital loans and cash-on-demand options for potential buyers and sellers via its NBFC subsidiary, Udaan Capital. The revenue comes through service and interest fees for these services.
4. Advertising
Numerous sellers and brands promote their services and products on the Uddan platform, allowing them to connect with a larger B2B audience. Udaan earns money from these ads through its platform.
5. Value Added Services
Udaan provides value-added services that can improve the trade experience for companies. These services include data analysis and inventory management, as well as invoice printing, cash collection and market analysis. Revenue is generated by charges for these services.
Latest Developments
Udaan has reported more than 60% revenue growth year-over-year and a 70% increase in daily transactions with buyers, and a 30% decrease on EBIDTA consumption in FY 2024. Udaan was able to raise 75 million dollars in the month of January. It was and then $114 million by June 2025, bringing total of 2025’s funding to $189 million.
Udaan bought ShopKirana, a tech-based retail startup in the month of July 2025. This acquisition has boosted Uddan’s capabilities in kirana store digitization and technology to manage supply chains for SMEs.
The month of September was 2025. Udaan has signed an MOU together with Common Services Centres to provide visa processing services to more than 100 countries on the CSC Safar portal.
