The purpose is to analyse the factors that affect social media usage of undergraduate students. In order to achieve the objectives, 115 undergraduate students were considered using convenience sampling technique. The data was collected using structured questionnaire based on 5 point Likert scale. The statistical analysis techniques namely, descriptive statistics and exploratory factor analysis were applied. The paper considers the use of top social networking sites with maximum users on Facebook. The study concludes that source of information is the most important factor followed by relationship and skill development factor that affects the use of social media usage among the undergraduate students. The study suggests that social media and networking sites should become transparent in sharing relevant information, and provide valuable content to enhance the users’ learning and skill development. The results may lack generalizability due to the use of convenience sampling technique. Therefore, it is suggested for upcoming researchers to test the proposed suggestions further.