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Udaan's getting smaller, its problems aren't

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Pranav Balakrishnan

42 reads
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Pranav Balakrishnan

42 reads

In FY23, Udaan downsized its business to get closer to profitability. That wasn’t a one-off though. Company insiders say that the B2B trade unicorn continues to jettison entire categories as it seeks to prioritise profitability.

April 15, 2024

12 MINS READ

Key Takeaways

  • B2B trade unicorn Udaan is set to discontinue several categories, including electronics and fashion
  • It is also seeing top-level exits and has seen one of its founders leave the company’s board
  • This comes after a tough few years for the company, which saw revenues nearly halve in FY23 as it sought to cut costs
  • The company is further narrowing its focus and streamlining its supply chain as it looks to turn things around

It’s been a tumultuous few years for business-to-business (B2B) trade platform Udaan. Once among the most promising startup bets in the country, even becoming the fastest Indian startup to achieve unicorn status in 2018, it has struggled to live up to its early potential.

During the pandemic, a difficult period for Udaan, the Bengaluru-based unicorn saw two of its founders—Sujeet Kumar and Amod Malviya—step away from active roles in the company. Now under the leadership of its third co-founder, Vaibhav Gupta, Udaan is still fighting gravity as it struggles to break out of its downward spiral.

In the year ended March 2023 (FY23), Udaan’s revenues almost halved, dipping to Rs 5,629 crore from Rs 9,900 crore in the year prior, as it downsized its business in a desperate attempt to cut costs. This de-growth, though, doesn’t appear to have been a one-off. According to multiple people aware of the matter, CEO Gupta continues to chop away at Udaan’s business in order to keep the company’s head above water. 

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