The Shopping Trends That Defined Kirana Commerce on Udaan in CY24

Over 2.45 Billion units of products weighing over 7 Lac Metric Tonnes delivered on udaan

Closes 2024 with the highest-ever daily buyers achieving 70% Growth in Buyer Run-Rate

Key Highlights:

• Repeat rate have hit an all-time high, rising 1,000 bps above last year —reinforcing strong customer stickiness and trust.
• Revenue run rate surged by 65% YoY, reflecting udaan’s accelerating growth trajectory.
• FMCG category saw an exceptional 85% YoY growth, driven by a 50% increase in the number of products ordered by retailers—a validation to udaan’s robust distribution capabilities and deep market penetration.
• Private label brands’ Revenue run rategrew by 250%YoY, reflecting increasing demand for high-quality, value-driven productsamong kirana retailers
• udaandeployedElectric Vehicles (EVs) for last-mile deliveries in Bengaluru with a commitment to drive sustainability and operational efficiency

 National 24 February 2025: udaan, India’s largest e-business-to-business (eB2B) platform, today announced the shopping trends that defined eB2B in Calendar Year 2024 (CY24) on the platform, offering key insights into how the shopping patterns of Indian retailers havetransformed over the past year. With key achievements in business performance, rapid growth in private label adoption, and exceptional engagement across FMCG and other key categories, the trend highlights udaan’stransformationalimpact on the kiranaecosystem.

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 rates 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 a85%+Year-on-Year (YoY) growth in its revenue run rate. The growth was driven by anincrease 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 witnessed60% 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 kiranaretailers. 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 deployedElectric 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 200basis points and contribution margins by 320basis 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.