Udaan Aims to Expand FMCG Reach Six-Fold to 10,000 Small Towns and Villages
- ByStartupStory | March 25, 2023
Udaan, a B2B e-commerce unicorn, is set to expand its FMCG vertical reach in rural areas, taking advantage of the growing demand for cold beverages. With the backing of Lightspeed Ventures Partners, the company plans to extend its reach to around 10,000 small towns and villages within a year. Udaan is also expecting to achieve a year-over-year doubling of its business in the cold beverages segment during the upcoming summer season.
According to a senior official at Udaan, the company is targeting a growth of approximately 100% YoY in the cold beverages segment, driven by the strong demand from retailers and kirana owners in rural markets. This growth is expected due to the wide range of partner brands available on the platform and the company’s expansion across Bharat through its ambitious “Project Vistaar” initiative, aimed at capturing the opportunities in the FMCG business in rural areas.
Udaan has initially focused on serving rural markets with populations of up to 3,000 in the Ghazipur and Jaunpur districts of Uttar Pradesh. However, the company plans to expand its “Project Vistaar” initiative to cover 10,000 towns and villages over the next 10-12 months, according to a senior official. Udaan is aiming to tap into the opportunities in the rural market for cold beverage supplies as part of its expansion strategy.
According to a senior official, Udaan is focusing on meeting the current demand in rural areas by stocking up on small pack sizes and offering a wide range of brands on its platform. The company is working closely with key brands such as Coca-Cola, PepsiCo, Dabur, Hector Beverages (PaperBoat), and HellEnergy, and is increasing its inventory to cater to the needs of small retailers and kirana owners by providing them with a diverse selection of cold beverages.
To meet the growing demand from across Bharat, Udaan has expanded its warehousing capabilities and added next-day delivery options, according to a senior official. The company is focused on catering to rural demand by not only offering a variety of brands but also providing small-sized packs, such as 200-milliliter packs that are a perfect fit for the purchase habits of customers in Bharat.
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