Nine months ago, three friends Amod Malviya, Sujeet Kumar and Vaibhav Gupta, who founded Udaan in 2016, again reached a turning point, where they had to make a crucial decision for the firm.
The company has become India's largest business-to-business (B2B) e-commerce platform amid the pandemic. The former top Flipkart executives had an intense discussion about how to achieve their next audacious goal turning Udaan into a publicly-listed entity in 18-24 months and becoming a large global public company.
The three co-founders came up with a strategy of having a sharp focus on positive unit economics and behaving like a 'publicly-listed company' by tracking 'quarter-on-quarter' performance.
"We are feeling good about the changes that we made. We are feeling that it was the right call and it has made us stronger. It is a muscle that we are building in the company that is needed for a successful IPO (initial public offering)," said Vaibhav Gupta, co-founder, and CEO of Udaan.
He added, "From the last three quarters, we have improved not just our unit economics but also profitability. We have a very strong handle over our cash flow through these times."
Positive unit economics cover all the direct variable costs associated with servicing an order, according to the experts.
This story is from the June 25, 2022 edition of Business Standard.
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This story is from the June 25, 2022 edition of Business Standard.
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