We expect to maintain 45% growth for next 2-3 years

Since taking over as CEO of Udaan in September 2021, Vaibhav Gupta has steered the company through a series of strategic pivots focused on cost efficiency, customer retention, and category expansion.

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In an interview with S Shanthi, Gupta explains how the firm's consistent 40-45% monthly growth and steady progress towards profitability have laid the foundation for an IPO in 18-24 months. Excerpts:

What prompted the ShopKirana acquisition, and how does it align with your broader plan?

Over the past few years, we have pursued a clear strategy to build a sustainable, scalable, and profitable business. We have grown over 60% annually and improved EBITDA by 40%. All 40+ cities we operate in are growing 40-70% and are unit economics positive. Retention and wallet share are at record levels. Our supply chain costs have dropped from 10-12% to 3.5%, which reflects in our burn. ShopKirana aligns perfectly as it brings deep FMCG focus, strong teams, and geographic complementarity, helping us accelerate both growth and profitability.

Will you pursue more acquisitions ahead of the IPO?

We are open to opportunities that align with our strategy. Now that we have fixed unit economics and margins, the next phase is quality scale. Any acquisition must accelerate our profitability and IPO plans, but we will remain selective.