Udaan's Revival Blueprint, Google's AI Arsenal & More

Can Udaan Take Flight?

It has been a tough couple of years for Udaan. Battling flat revenues, a shrinking GMV and a downround, the B2B ecommerce giant has abandoned its blitzscaling playbook for a radical new reinvention. So, what does Udaan’s new blueprint for revival entail?

An Audacious Bet: To navigate this crisis, Udaan is transforming from a simple marketplace into an integrated three-layer model. Here’s a lowdown:

• Logistics arm, Udaan Express, aims to turn a core industry pain point into a profit lever by controlling the supply chain.
• Fintech vertical, UdaanCapital, provides crucial working capital to retailers, embedding itself into their operations and boosting platform stickiness.
• And finally, the acquisition of ShopKirana has been deepening its presence in retail tech, offering merchants tools for inventory management and predictive ordering, improving efficiency and driving repeat business.

Green Shoots Of Revival: The restructuring is showing results. Helped by Udaan’s focus on cost optimisation, trimming discounts and improving unit economics, the B2B giant’s losses narrowed 19% YoY in FY24. On the other hand, margin-focussed execution and impetus on certain segments led to daily buyers growing 60% and monthly buyers 30% in the last 12-18 months.

The Blurry Road To Profitability: Still, the road to profitability remains bumpy. A fragmented retail base, entrenched dealer networks, and wafer-thin margins continue to test Udaan’s resolve. The company is facing criticism for its lack of focus in the B2B ecosystem and over-reliance on deep discounting.

So, can Udaan’s integrated play – combining logistics, fintech and retail and credit – create the defensible moat needed for profitability, or will the operational complexity eat into Udaan’s latest experiment? Let’s find out…

From The Editor’s Desk Thyrocare’s Healthy Surge

• The PharmEasy-owned diagnostics lab chain reported Q2 FY26 net profit of INR 47.8 Cr, up 81% YoY and 25% sequentially, supported by robust top-line growth and margin expansion.
• Revenue rose 22% YoY to INR 216.5 Cr, driven by a 24% increase in pathology segment revenue, with franchise and partnership revenue growing 20% and 35% YoY, respectively.
• While Thyrocare flourishes, parent PharmEasy continues to face financial strain, taking an additional INR 1,700 Cr debt and pledging 3.23 Cr shares of the diagnostics lab chain.

Google Readies $15 Bn War Chest

• Google plans to invest $15 Bn over five years to build its largest AI data centre in Visakhapatnam. The hub will combine AI infrastructure, a 1 GW data centre, large-scale energy sources, and an expanded fibre-optic network, serving both Google’s internal AI needs and external enterprises in India.
• The hub will become part of Google’s global AI network spanning 12 countries and act as a landing station for high-capacity submarine cables, complementing its existing Mumbai and Chennai subsea landings.
• The centre will leverage innovations from Google’s R&D in Bengaluru, Hyderabad, and Pune, and is being developed in collaboration with AdaniConneX and Airtel. The investment underscores India’s rising importance in AI and cloud infrastructure.

HouseEazy Bags INR 150 Cr To Make Its Next Move

• Proptech startup HomeEazy has raised INR 150 Cr in its Series B round led by Accel to expand into new cities like Pune, Mumbai and Bengaluru, and scale up its tech stack.
• Founded in 2021, HouseEazy facilitates the buying and selling of pre-owned apartments. With a GMV ARR of INR 850 Cr, the startup claims to have facilitated transactions for over 2,500 homeowners, totalling INR 2,000 Cr, in the past three years.
• With its asset-light model and a one-stop platform that spans legal due diligence, mortgage facilitation and registry services, the profitable startup is eyeing a piece of the booming and fragmented Indian real estate market.

AITMC’s Second Stab At An IPO

• The dronetech startup has pre-filed its DRHP with SEBI for an INR 200 Cr IPO, marking its second attempt at a public listing. The fresh funds will be used for business expansion, working capital, and general corporate purposes.
• Founded in 2016 by Preet Sandhuu and Deep Sisai, AITMC provides drone training, drones-as-a-service, and agri solutions. It operates 70+ training centres across 16 states and reported a net profit of INR 14 Cr in FY25.
• This comes after a failed merger with DroneAcharya and its first IPO attempt in 2023. With Operation Sindoor driving valuation jumps, AITMC could draw strong investor interest.

UPI Front-Runners Lose Ground

• In September 2025, total UPI transactions fell to 19.6 Bn from 20.1 Bn in August, while transaction value remained flat at INR 24.9 Lakh Cr.
• Market leaders PhonePe (46.4%) and Google Pay (35.4%) saw minor declines in market share, whereas fourth-ranked Navi gained slightly, processing 52.6 Cr transactions, which highlights a marginal shift among UPI apps.
• The market retrenchment comes just as the NPCI recently piloted agentic AI payments and IoT payments, suggesting that digital payments are in a transitional phase – moving from pure growth to feature-led differentiation.

Inc42 Markets

Inc42 Startup Spotlight Can Tuco Kids Crack The Beauty Code For Kids?

Indian teens and tweens often face a host of skin and hair issues. Yet, there is a scarcity of beauty and personal care (BPC) brands that cater to this demographic, leaving a critical gap in the market. Tuco Kids is trying to fill this void with a product line designed for the unique needs of pre-adolescent children and young teens.

A Niche Portfolio: Founded in 2023, the Bengaluru-based startup sells a range of 35 SKUs, including essentials like face creams, shampoos, and conditioners, as well as beauty products such as kajal, lip tints, body mists, and nail paints. The startup sells directly through its website and has a strong presence on major marketplaces like Amazon, Flipkart, Myntra, and Zepto.

Formulating The Right Mix: With product prices ranging from INR 199 to INR 699, Tuco Kids targets discerning urban and semi-urban parents. The brand’s strategy is not to compete on price but to win customers with the efficacy and safety of its formulations. The brand claims to have already served over 2 Lakh customers, with online conversion rates 1.5X higher than broader BPC players.

With an eye on clocking INR 100 Cr in revenues in FY27, can Tuco Kids carve a niche in the booming BPC market for tweens in India?

Infographic Of The Day

From opening flagship stores in key metros to building a deeper supply chain in the country, Apple isn’t just about iPhones anymore — it’s selling an ecosystem and reshaping how Indians shop for tech.⁣

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