B2B e-commerce unicorn Udaan plans to expand FMCG vertical to expand six-fold to around 10,000 small towns and villages in a year, based on the opportunity in the cold beverages segment in rural areas, according to a senior company official.
According to Udaan FMCG Business head Vinay Shrivastava, the Lightspeed Ventures Partners-backed company expects to double its business in the cold beverages segment year over year in the coming summers.
Given the wide range of partner brands available on the platform and our expansion across rural markets through Project Vistaar, Shrivastava said, we are targeting growth of around 100 per cent YoY in cold beverages on the back of strong demand from retailers and kirana owners in rural markets.”
Udaan has embarked on an ambitious project called “Project Vistaar” to expand the FMCG business and tap rural opportunities. The company, which began in the Uttar Pradesh districts of Ghazipur and Jaunpur, serves rural markets with populations of up to 3,000 people. “Over the next 10-12 months, our goal is to expand ‘Project Vistaar’ reach to 10,000 towns and villages,” Shrivastava said.
For expansion, the company is looking to tap rural opportunities for cold beverage supplies. “With the current demand in rural areas in mind, we are stocking small pack sizes and looking to make a wide variety of brands available on the Udaan platform,” Shrivastava said.
He also stated that Udaan is collaborating with key brands such as Coca-Cola, PepsiCo, Dabur, Hector Beverages (PaperBoat), and HellEnergy, among others, to increase inventory and provide a diverse range of cold beverages to small retailers and kirana owners.
“Udaan has increased its warehousing capacity and added next-day delivery options to meet demand from rural markets. With rural demand in mind, Udaan is considering not only supplying a variety of brands but also making small-size packs available. A 200-millilitre pack, for example, is ideal for rural customers’ purchasing habits, added Shrivastava.
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