B2B trade platform Udaan’s Revenue rises 21X and losses Bounce to 3.32X in FY20

A month back, Udaan had come into the news when it raised $280 Million funding in its extended series D round from new and existing investors.

And now, once again, when the filings of its parent company, Singapore-based Trustroot Internet Pvt. Ltd., is in the public domain, it leads to some interesting data about the start-up unicorn status with the valuation of $3.1 Billion.

The data shows that the Operating Revenue of Udaan increased to 978 Cr. in FY20, As compare to 46.3 Cr. in FY19. And total losses also increased to 2,518.7 Cr. in FY20, As compare to 779.6 Cr. in FY19.

The Operating Revenue of the company has increased by 21X as compared to FY2019, and It is also interesting to see the Expenses rise by 4.1X as compared to the last FY2019, which shows the expansion phase of the company and to make a concrete platform for their customer base of retailers. 

 The Annual losses have shoot-up by 3.32X as compared to FY2019, which leads to Net Cash Flow from operations of the company has also swell by 3.25X as compared to FY2019.

The e-commerce sector is badly impacted by the Covid-19. Ecommerce sales are estimated to have risen by only 7-8% in 2020, As compared to 27% in 2019. Udaan had also faced a tough time as a company last year, the supply chain and their registered retailers ceased their business, and Udaan has also fired a huge number of employees during the Lockdown period.

But now things are changing. In the words of the Co-founder, “Covid-19 has accelerated the already fast digital-led evolution of the highly fragmented and unorganized Indian retail industry. At the same time, the pandemic also highlighted the unique structure of the Indian economy, with millions of kiranas (corner stores) and neighbourhood stores becoming the lifeline of our country at the time of crisis,” said Amod Malviya, co-founder of Udaan.

Udaan, which plays as a mediator connecting small and medium-sized retailers with manufacturers and vendors, said it has a network of over 3 million users and 25,000+ sellers across 900 cities. It deals with goods in the electronics, lifestyle, fruit and vegetables, staples, home and kitchen, FMCG, toys, pharma and general merchandise categories.

The company is not only targeting small retailers to sell goods to, but also to buy services such as working capital loans, which this business segment has historically not had access to.


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