The fresh capital will be deployed to strengthen udaan’s category and customer footprint, with focus on  Fast-Moving Consumer Goods (FMCG) category and Hotel, Restaurant, and Catering (HoReCa) customer segment. udaan will also accelerate its private label brands initiatives in the staples category. This capital raise will also fortify udaan’s balance sheet, providing enhanced financial flexibility as the company advances toward its public market debut.

As part of its long-term vision, udaan is focused on driving “consistent growth with profitability at scale” by following regional cluster-led operating model reinforcing its commitment to building a sustainable and scalable business.

Backed by solid business fundamentals, udaan continues to demonstrate strong contribution margin accretive growth, clocking 60%+ Year-on-Year (Y-o-Y) growth in CY 2024, alongside a 300+ basis point improvement in contribution margin. This growth trajectory has continued into CY 2025 with an additional 100+ bps contribution margin improvement year-to-date. Alongside the contribution margin growth and scale operating leverage, udaan also reduced its fixed costs by 20%, leading to a 40% reduction in EBITDA burn in calendar year CY 2024 and an additional 20% reduction year-to-date in CY 2025.

Vaibhav Gupta, Co-founder and CEO, udaan, said, “Over the last 3 years, we have transformed the business by building cost as a capability and a competitive advantage.  We have reduced our EBITDA burn by 40% every year for the last 3 years and are on track to achieve full group EBITDA profitability in the next 18 months.

udaan’s hybrid model of ‘highly available eCom app + new-gen tech-first sales’ is now established as the benchmark winning model for eB2B, providing an ROI accretive customer wallet growth, and a strong solution for brands and manufacturers to drive product mix.”

Completion of series G round enables us to continue investing in our customer-tech  platform, sales-tech capabilities and deepening our customer value proposition helping us deliver our goal of consistent growth with profitability at scale.”

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The Shopping Trends That Defined Kirana Commerce on udaan:

udaan shipped over 2.45 Billion units in the FMCG business  alone, with the tonnage of all food products delivered (FMCG, Staples and Fresh) exceeding 7 lakh Metric tonnes. The platform recorded ~ 65% increase in overall business, driven by a ~70% growth in the daily buyers, marking 2024 as the year with the highest-ever daily buyers on the platform. Additionally, repeat rate reached an all-time high, rising 1,000 bps above last year, reaffirming strong customer stickiness and trust. This milestone highlights the value udaan delivers to a diverse and expanding network of kirana partners, empowering them to grow and succeed in a dynamic retail market.

Further, udaan processed 85.85 million lines of orders, highlighting its growing role as a trusted partner for retailers. This growth reflects not only increasing daily reliance but also udaan’s ability to seamlessly manage diverse inventory needs. Backed by a robust network and operational excellence, udaan remains committed to delivering value to kirana partners across Bharat.

Vaibhav Gupta, Co-Founder and CEO, udaan, said, “This has been a defining year for us with strong sustainable growth highlighting the success of the eB2B cluster playbook that udaan has developed to empower small retailers across India. With 85%+ growth in FMCG and 250% growth in staples private labels business, we are not just enabling kirana commerce but actively leading its transformation. The rapid adoption by kiranas also highlight udaan’s acceptance as the most trusted eB2B partner for small businesses. 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.”

Essentials category (FMCG, Staples and Fresh)

The FMCG business achieved a 85%+ Year-on-Year (YoY) growth in its revenue run rate. The growth was driven by an increase of 50% in the number of products ordered by retailers, demonstrating udaan’s strong distribution capabilities to meet the diverse and evolving needs of buyers. Additionally, the FMCG business witnessed 60% increase in buyers, highlighting the growing trust and dependence of retailers on udaan for their everyday business essentials requirements.

udaan’s private label brands continued to accelerate and recorded 250% Y-o-Y growth in its revenue run rate. This remarkable performance reflects the increasing demand for udaan’s high-quality, value-driven products that have become a preferred choice among kirana retailers. The success of private labels not only signifies deep customer trust but also aligns seamlessly with udaan’s strategy to enhance profitability by offering superior margins through exclusive, high-performing products.

The udaan platform witnessed a strong surge in demand, with Bengaluru, Delhi, Hyderabad, and Kolkata continuing to drive growth among Metros. At the same time, non-metro cities like Ghaziabad, Jaipur, Ahmedabad, Lucknow, and Indore saw rapid adoption, highlighting the deepening penetration of eB2B commerce.

Additionally, Pune, Mysore, and Mumbai emerged as high-growth markets, reinforcing the growing acceptance of eB2B trade among small businesses and strengthening udaan’s position as the preferred partner for retailers across Bharat

udaan’s Sustainability Initiative: Expanding EV Adoption in Last-Mile Delivery

As part of udaan’s commitment to sustainability and operational efficiency, in CY24 udaan introduced and deployed Electric Vehicles (EVs) for last-mile deliveries in Bengaluru. This initiative marked a significant step towards reducing carbon emissions and promoting eco-friendly logistics in the eB2B sector.

Overall Business Performance: Key Highlights

In CY24, udaan achieved consistent growth highlighting the strength of its strategic approach and implementation of the new design playbook in the marketplace. The company is on track to achieving profitability, with an impressive 65% ARR growth and over 70% increase in daily transacting buyers, driving deeper market penetration and increasing wallet share among retailers. Additionally, gross margins improved by 200 basis points and contribution margins by 320 basis points, alongside a 20% increase in buyer wallet share and monthly repeat ratio of over 90%. Most notably, during the period the company achieved a 30% reduction in absolute EBITDA burn, underscoring consistent focus on driving sustainable growth through efficiency enhancement and superior execution in the marketplace.

The post The Shopping Trends That Defined Kirana Commerce on udaan in CY24 appeared first on Business of Food.

This initiative aims to enhance the income of Fair Price Shops dealers while improving nutritional outcomes for beneficiaries. The initiative also provides upskilling of FPS dealers, access to credit, and ongoing financial support to them, enabling them to offer nutrition-dense non-Public Distribution System (PDS) commodities at their shops

The initiative was launched in the presence of Pralhad Joshi,  Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy in New Delhi. Manoj Mittal, Chairman & Managing Director from SIDBI, and Vaibhav Gupta, Co-Founder & CEO of udaan were present on the occasion.

Talking about the initiative, Vaibhav Gupta, Co-Founder and CEO, udaan, said, “At udaan, our mission has always been to empower small businesses and create a more inclusive and efficient marketplace. The Jan Poshan Kendra Development initiative of the Ministry of Consumer Affairs, Food and Public Distribution, in association with SIDBI and udaan, is a significant step towards achieving that vision. By modernising Jan Poshan Kendra and expanding their access to a diverse range of products, the initiative aims to empower these essential community businesses while contributing to the broader goal of ensuring that every Indian has access to quality and affordable nutrition. We are proud to be a part of this transformative initiative that will uplift both the small shops and the communities they serve.”

As part of this initiative, udaan will enable Jan Poshan Kendras to access a broader and more diverse assortment of food products through its eB2B platform. This will address the requirements such as:

• Availability of wide variety of products
• Regular stocking of frequently demanded products
• The need to serve a large and diverse population

This initiative will also provide the Jan Poshan Kendras with a large variety and adequate quantity of nutritional options at regular intervals to cater to the communities in the areas where they are present.

Under the pilot initiative, approximately 60 selected Fair Price Shops (15 FPSs from each pilot district/ state) across four States: Rajasthan (Jaipur), Uttar Pradesh (Ghaziabad) Telangana (Hyderabad), and Gujarat (Ahmedabad) have been identified.

As part of the pilot project being undertaken in various States, udaan will offer access to over 3500 products across various staples and FMCG categories, ensuring that Jan Poshan Kendras can meet the diverse nutritional needs of their communities.

Post a successful validation of the model, the initiative aims to expand and cover ~1.3 lakh Jan Poshan Kendras identified by the Ministry of Consumer Affairs, Food and Public Distribution for modernization.

To provide financial assistance to this initiative, SIDBI will offer credit facilities to these Jan Poshan Kendra, enabling them to purchase food grains and FMCG products through udaan’s platform.

This initiative is a significant step towards realizing the Government’s vision of a healthy and well-nourished India. Jan Poshan Kendras will immensely benefit from quality products at affordable pricing, a wider variety of food products and selections, better product availability, and enhanced convenience of ordering anytime. Additionally, the underserved communities that they serve will gain access to a broader range of essential nutritional options at various price points, thereby improving their overall nutrition.

Udaan in partnership with other govt and financial authorities has already conducted multiple educational workshops for Jan Poshan Kendra owners, educating them on the benefits and opportunities provided by this initiative. The response from shop owners has been overwhelmingly positive, indicating strong support and enthusiasm for the initiative.

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