Udaan, an Indian business-to-business ecommerce firm and startup unicorn, is set to adopt a group-buying model that’s similar to Pinduoduo‘s with the launch of its consumer-focused grocery business, The Economic Times reported, citing people familiar with the matter.
Udaan’s adoption of the new business model comes as it plans to go public within the next 16 to 22 months.
In a bid to fuel its expansion before its IPO, the company is also looking to raise US$537 million in a new funding round, which will value the company at between US$4.5 billion and US$5 billion.
Udaan’s new consumer-focused grocery business, called Price Company, will see microretailers and owners of small stores in Tier 2 to Tier 4 towns act as “community leaders.” These retailers will be able to place and deliver orders and “get about 10% of the order size as commission,” said one person with knowledge of the matter.
Currently, the grocery business unit is working with these retailers and has offered them groceries and other supplies.
With the launch of Price Company, Udaan has set itself up against similar players including SoftBank-backed social commerce firm Meesho, Tiger Global-backed DealShare, and Y Combinator-backed Gobillion.
See also: The Pinduoduo model takes hold in India
Editing by Collin Furtado and Jaclyn Tiu
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