Udaan product shipment jumps six-fold to 1.7 billion in 2022

B2B e-commerce firm Udaan recorded over a six-fold jump in product shipments to 1.7 billion in 2022, catering to over 22 million orders, driven by demand for FMCG products, according to data shared by the company on Wednesday.

The Lightspeed Venture and Microsoft-backed unicorn had shipped 260 million products, catering to around 50 million orders in 2021 -- which was hugely impacted by the COVID-19 pandemic.

The total shipments made to over 1,200 towns and cities included over 70 million electronics products, more than 30 million products each in the lifestyle and general merchandise category, 9 lakh tonnes of essentials, and 1.5 lakh tonnes of FMCG products during the year.

"With an addressable market of approximately USD 1 trillion and penetration of less than 1 per cent, B2B eCommerce offers a huge opportunity to mass-market players. A horizontal platform like Udaan, which has made substantial investments in building capabilities, such as a nationwide supply chain & logistics network, a superior tech platform and trade credit is well placed to leverage this opportunity," Udaan co-founder and CEO Vaibhav Gupta said in the statement.

In 2022, Udaan witnessed a huge surge across the essentials category with a repeat purchase rate of over 89 per cent with the highest demand coming from Uttar Pradesh, Delhi, Karnataka, Maharashtra and Telangana.

It shipped over 320 million biscuit packets, 210 million beverages, and about 125 million namkeen packets, followed by ready-to-eat products - approximately 85 million noodle packets and 36 million chocolate packets were shipped through the platform.

Shipment of personal care products grew by over 34 per cent to 430 million in 2022 from 320 million in 2021. It shipped over 210 million home care items.

During 2022, Udaan's electronics business catered to 2.5 million orders and over 71 million products were shipped through its platform comprising over 65 million accessories and consumer electronics and 6 million mobile handsets.

"Large volume of orders for electronics products came primarily from Karnataka, Assam, Uttar Pradesh, Andhra Pradesh, Bihar, Tamil Nadu, and West Bengal," the statement said.

Udaan said that 586 sellers achieved the landmark of selling products worth Rs 1 crore through its platform in 2022.

The sellers achieving Rs 1 crore sales mark comprised 247 sellers from the electronics business, 120 sellers from Lifestyle, and 219 sellers from the general merchandise business.

In addition, 174 out of the 247 sellers in the electronics business achieved sales of over Rs 2 crore in 2022, the statement said.