Udaan records 65% rise in overall business in 2024

B2B trade platform Udaan on Monday said it has recorded a 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.

During 2024, according to the report, the platform delivered 2.45-billion units of products in the FMCG business alone, Udaan said.

At the same time, its private label brands' revenue run rate, the company said, grew by 250% year-on-year, reflecting increasing demand for value-driven products among kirana retailers.

Additionally, repeat rate reached an all-time high, rising 1,000 basis points above last year, reflecting the value the platform delivers to a diverse and expanding network of kirana partners, empowering them to grow and succeed in a dynamic retail market, it said, adding that it has processed 85.85 million lines of orders.

"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.

"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.

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, it said.

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%, according to the platform.

Also, 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, Udaan said.

The platform said it witnessed a strong surge in demand, with Bengaluru, Delhi, Hyderabad, and Kolkata continuing to drive growth among metro cities, and added that non-metro cities like Ghaziabad, Jaipur, Ahmedabad, Lucknow, and Indore saw rapid adoption.

Additionally, Pune, Mysore, and Mumbai emerged as high-growth markets, reinforcing the growing acceptance of eB2B trade among small businesses, it said.