Sector: B2B E-Commerce
Founded: 2016
Valuation: $1.8 billion (2024)

Company Overview: Udaan, an Indian B2B e-commerce platform, was founded in 2016. It connects manufacturers, wholesalers, and retailers through its platform, creating a digital ecosystem for trade.

Challenges encountered:

• As Udaan expanded rapidly, it struggled with financial inefficiencies in its credit lines extended to small retailers, leading to delayed payments and cash flow mismatches.
• Additionally, without a robust financial monitoring system, fraud risks grew, especially with remote transactions.

Solutions Implemented:

• Udaan installed data analytics-driven financial controls that used AI to monitor credit lines in real-time, flagging anomalies and preventing overdue payments.
• They implemented inventory management software linked with their financial systems to ensure accurate tracking of stock levels, enabling better cash flow prediction.
• By adopting mobile-based audit systems, Udaan was able to perform regular financial health checks remotely, ensuring transactions were legitimate and in compliance with their internal policies.

Outcomes Attained:

• Udaan successfully reduced payment defaults by over 30%, improving their cash conversion cycle.
• The robust control mechanisms helped them secure a $280 million investment from major venture capitalists, including Lightspeed Venture Partners, and enabled them to focus on their long-term goal of becoming a $5 billion company.
• Whilst the company is currently struggling to cope up from the exit of its two founders, they are narrowing its focus and streamlining its supply chain as it looks to turn things around