B2B unicorn Udaan records 65% jump in overall business in 2024

B2B trade platform Udaan has recorded a 65% increase in overall business in 2024, marking the highest-ever count of daily buyers on its platform.

This growth was driven by a 70% rise in daily buyers and a significant jump in demand for the company’s private label brands, which posted a 250% year-on-year revenue run rate.

During the year, Udaan delivered 2.45 billion units of products in the fast-moving consumer goods category.

Higher repeat rates and order volume  

The company reported a substantial increase in repeat business, with a rate 1,000 basis points higher than last year. It processed 85.85 million lines of orders in 2024, underlining how users continue to return to the platform for a variety of retail needs.

Vaibhav Gupta, co-founder and CEO, described the past year as a defining period, noting that the success of Udaan’s eB2B cluster playbook helped empower small retailers throughout India.

Focus on sustainability and profitability  

Udaan said it is on track to achieve profitability and reported a 65% annual recurring revenue growth. Daily transacting buyers grew by more than 70%, increasing market penetration and wallet share among the platform’s kirana partners.

The company also recorded a 200-basis-point improvement in gross margins and a 320-basis-point rise in contribution margins. Monthly repeat ratios exceeded 90%, and buyer wallet share went up by 20%, reflecting the platform’s growing appeal to retailers.

Reduction in costs and expanding market reach  

While scaling up its operations, Udaan managed to reduce its absolute EBITDA burn by 30%, indicating that the business is striving for more efficient growth. This was partly driven by improved execution in the marketplace and a focus on operational efficiency.

Bengaluru, Delhi, Hyderabad and Kolkata led the surge in demand among metro cities, while non-metro areas such as Ghaziabad, Jaipur, Ahmedabad, Lucknow and Indore saw rapid adoption.

Pune, Mysore and Mumbai also emerged as high-growth markets, showing that interest in eB2B trade is expanding across different regions.

"As we look forward to 2025, our focus remains on customer-centric innovation, operational efficiency, and sustainable value creation 'strengthening the backbone of Bharat's kirana ecosystem and driving the future of retail distribution," said Vaibhav Gupta, Co-Founder and CEO, Udaan.