Udaan shifts to cluster-led model as revenue grows 13%

Udaan has reported a 13% year-on-year rise in revenue after four years of stagnation, crediting a shift to a cluster-led operating model that ties performance to city and category teams. The change marks a retreat from broad market expansion in favor of efficiency and profitability in existing operations, according to Vishnu Menon, the company’s senior vice president of business finance.

The move reflects a broader trend among Indian startups, which have faced investor pressure to demonstrate sustainable growth. Earlier this month, growth-stage funding in India overtook late-stage deals for the first time in two years, suggesting capital is now flowing toward companies showing clearer paths to profitability. Udaan’s focus on granular accountability—rather than national scale—aligns with that shift, though it remains unclear how quickly the model will translate into consistent margins.

Menon did not disclose absolute revenue figures or whether the company has turned profitable. For now, the bet appears to be on depth over breadth.

Sources: economictimes.indiatimes.com