Prior to its 2025 IPO, e-commerce firm Udaan will reduce expenses

 Prior to its 2025 IPO, e-commerce firm Udaan will reduce expenses

Chief Executive Officer Vaibhav Gupta said in an interview that Udaan, which helps smaller merchants source their items and competes with Reliance Industries Ltd. and Walmart Inc.'s Flipkart, would achieve an operational profit within 18 months. That is scheduled to occur concurrently with the company's IPO, he said.

E-commerce firm Udaan is getting ready to go public in 2025, so it's trying to cut expenses and establish new alliances with Indian consumer brands.

Chief Executive Officer Vaibhav Gupta said in an interview that Udaan, which helps smaller merchants source their items and competes with Reliance Industries Ltd. and Walmart Inc.'s Flipkart, would achieve an operational profit within 18 months. That is scheduled to occur concurrently with the company's IPO, he said.

According to Gupta, "steady and predictable financial performance" is the top objective. "Second, our strategic goal is to stay at the forefront of manufacturers' and shopkeepers' minds, as well as to hold onto our relative market share."

funded by Lightspeed Venture Partners Among the businesses attempting to capitalize on India's consumer market and economy's explosive expansion is Udaan, which is also aiming to satisfy investor expectations for profitability. At the height of its employment, Udaan employed thousands of people. Last year, it, along with other Indian startups, reduced employment and tightened internal controls and compliance. With around 1,800 employees as of right now, Gupta would not say if further layoffs are necessary.

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Corporate governance errors at Byju's, an Indian online teaching company that was once the nation's most valuable startup with a $22 billion value, exposed the particular difficulties encountered by South Asian entrepreneurs and encouraged other businesses to exercise more caution.

As we go toward public markets, Gupta said, "we continue to move towards more experienced management, professionalized boards, and also institutionalized shareholders."

Udaan has not yet decided whether it would list internationally or in India. According to a September Business Standard story, it was in discussions to raise $400 million and was valued at over $3 billion in a 2021 investment round. Tencent Holdings Ltd. owns 6% of Udaan, while Lightspeed owns around 35%.

In 2016, three developers who had previously worked at Flipkart launched the firm. Until Gupta, one of the founders, assumed the role of CEO in 2021, the three of them jointly managed Udaan. Amod Malviya and Sujeet Kumar, the other two founders, are board members.

Udaan created a logistics network and online marketplace to enable small businesses get supplies more quickly and eliminate the need for conventional intermediaries. According to McKinsey & Co. estimations published in the Mint newspaper, that kind of digitally driven wholesale firm may grow to $150 billion in sales and provide a 100% return on capital invested in ten years, although still making up a relatively tiny portion of India's entire retail industry.

The fintech division of Bengaluru-based Udaan has also entered the financial space by assisting store owners in obtaining working capital loans for inventory purchases. According to Gupta, the company is expanding 70% a year and is profitable before taxes.

According to Gupta, "that's a second business operating under the general umbrella of Udaan trying to organize businesses in the country." "Financing becomes of the most significant market opportunity in addition to commerce."