Udaan is a B2B (business to business) e-commerce platform that connects manufacturers and wholesalers of goods with retailers and other businesses.
Udaan however, aims to be a lot more than a marketplace for B2B transactions. It bundles a lot of value added services like shipping and delivery, receivable collection as well as extension of credit for buyers to fund their purchases.
In this post we look at how the B2B e-commerce platform Udaan makes money.
Udaan Founders:
Udaan was founded by the team of Amod Malviya, Sujeet Kumar and Vaibhav Gupta.
Udaan Revenue Model.
Udaan makes money for a lot of different sources. Its primary revenue sources include:
Revenue from Logistics services: An important sources of revenue for Udaan is the delivery charges it collects from the market participants for picking-up goods from the premises of the seller and delivering the same to the buyer. There are also fees for collecting any return of sales from the customers.
Revenue from Warehousing services: Udaan also provides, sellers registered on the platform, storage and warehousing services to enable them to delivery goods faster to the buyers. Sellers are charged a fee for such warehousing services.
Fees from receivable collection services: Fees from receivable management services include fees for collecting payments from buyers in cash on behalf of the sellers or fees for accepting payments online on behalf of the seller.
Advertisement Services: Udaan also collects advertisement fees from the selling by promoting their product listings on the platform to ensure better visibility among buyers in the platform.
Interest from Credit: Udaan, through its NBFC arm extends credit to merchants and traders to help them meet their working capital requirements. Interest income from such loans is an important source of revenue for the platform.
Income from other value-added services: Udaan offers several other fee-based value added services to businesses registered on their platform. These include services like packaging and printing of labels on products, printing of invoices and returns management services.
Hope you liked our presentation on the Revenue-Model of Udaan.
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