Amod Malviya and Sujeet Kumar, the other two cofounders, will support the effective functioning of a “CEO-led organistion” and will continue to shape strategic roadmap and investment decisions as active board members, the company said in a press statement issued on Friday.
The changes are effective from September 10.
Kumar, Gupta and Malviya, who have previously worked at Flipkart in senior roles, started Udaan in 2016. While Malviya has been focused on technology, Gupta was looking at business and finance. In his new role, all business functions will report to Gupta. Malviya will continue his focus on technology and product departments and Kumar will continue working closely with Gupta as well as on external relations of the company.
Udaan’s parent company is domiciled in Singapore and the initial public offering is likely to be outside India. It has held talks with investment bankers to understand and execute its IPO plans but it hasn’t mandated anyone as yet for an IPO.
In its statement, Udaan said its cofounders always envisioned the company as an institution that is professionally run and will last beyond them. “As part of this vision, they combined a strong and shared vision with their expertise to build an admired and professionally run institution,” the Bengaluru-based startup, which is valued at $3 billion, said. “This model enabled speed, allowed rapid experimentation and learning – contributing to strong business foundations and leadership depth,” the statement added.
We have a CEO now https://t.co/boSsMINR2C
— Amod Malviya (@amodm) 1631269926000
On his appointment as CEO, Gupta said it was important for the company to lay the right foundation as it looks at its next stage of growth. “It is with this objective that this structure (new CEO) has been created that will help in the evolution of the organisation, enhance agility and efficiency, drive innovation and bring us closer to the customer,” he said.
Kumar and Malviya said Udaan’s focus for the next few years will be on strengthening governance and driving innovation, capabilities, systems and processes, with a special focus on building a talent pipeline to capitalise on the huge opportunity that Bharat (non-metro markets in the country) offers. “What we have achieved in the last five years is just the tip of the iceberg. Together as a team, we look forward to building on what has already been created and making Udaan another world-class institution from India,” they added.
In an interview to ET in July, Kumar and Gupta had said
Udaan had recovered fully to pre-Covid-19 second wave levels with annualised gross merchandise value (GMV) in the range of $4-5 billion. In 2020, Udaan clocked a GMV of around $3 billion.
Pharmaceuticals and food have been two of its biggest categories since the outbreak of the pandemic. It also deals with segments like fashion, electronics and appliances, home and kitchen, footwear, and electricals.
Earlier this year,
Udaan raised $280 million as an extension of its $585 million funding round in October 2019. In total, it has now raised more than $1 billion from investors like DST Global, GGV Capital, Lightspeed Venture Partners, Altimeter Capital and Tencent.
Udaan is also disbursing around $1 billion of capital through its lending platform in partnership with banks and NBFCs as the demand for capital is increasing with more buyers coming online. It owns an NBFC licence.
The firm has more than 3 million users, 1.7 million retailers and 30,000 sellers on its platform.