Archive · 27 Jul 2026
B2B E-commerce in India: Udaan's Struggles and Peers' Success
Udaan, a once-prominent B2B e-commerce startup, is facing financial difficulties due to thin margins and high cash burn.
Meanwhile, its peers like OfBusiness, Infra Market, Moglix, and Zetwerk have succeeded by focusing on profitability and diversifying revenue streams.
The shift from chasing gross merchandise value (GMV) to building integrated businesses has been key to their success.
Companies are now focusing on specific sectors, controlling supply chains, and offering higher-margin services like lending and SaaS.
This shift has helped them achieve sustainable profits and growth.
Udaan faces financial stress due to thin margins and high cash burn.
Peers like OfBusiness, Infra Market, Moglix, and Zetwerk focus on profitability and diversified revenue streams.
Shift from chasing GMV to building integrated businesses with higher-margin services.
Companies specialize in specific sectors to improve profitability.
Market projected to grow at over 25% annually to $12 billion by 2028.
- Who
- Udaan, OfBusiness, Infra Market, Moglix, Zetwerk, ShopX.
- What
- Struggles of Udaan and success of its peers in B2B e-commerce.
- When
- Recent financial stress at Udaan.
- Where
- India.
- Why
- Shift from chasing GMV to building profitable, full-stack businesses.
Udaan's Struggles
Peers' Success
Business Model
Udaan's Struggles
Udaan focused on chasing gross merchandise value (GMV) leading to thin margins and high cash burn.
Peers' Success
Peers like OfBusiness, Infra Market, Moglix, and Zetwerk shifted focus to building profitable, full-stack businesses.
Revenue Streams
Udaan's Struggles
Udaan relied heavily on single-digit marketplace commissions.
Peers' Success
Peers diversified into higher-margin services like lending, SaaS, and private labels.
Operational Discipline
Udaan's Struggles
Udaan faced challenges in scaling and managing cash burn.
Peers' Success
Peers tightened operational discipline, improved supply chain control, and integrated multiple revenue streams.
- Udaan's Challenges
- Razor-thin wholesale margins, high cash burn, scaling issues.
- Successful Peers
- OfBusiness, Infra Market, Moglix, Zetwerk.
- Shift in Focus
- From GMV to profitability and unit economics.
- Revenue Streams
- Lending, SaaS, private labels, embedded finance.
- Market Growth
- Projected to grow at over 25% annually to $12 billion by 2028.