1. Startups

Una Brands Enliven “Rollup E-commerce” Business in Indonesia

Operating since October 2021 with five employees, aiming to acquire 12-15 local brands by 2022

Una Brands, startup aggregator E-commerce from Singapore, announced its presence in Indonesia after bagging series A pendanaan funding $15 million led by Alpha JWC Ventures, among others. It is targeted that 12 to 15 local brands can be acquired next year.

Una is committed to allocating an investment of $35 million (more than Rp500 billion) to support local brands in Indonesia to develop into international-class businesses through acquisition programs, working capital grants, operational support, and international business expansion. In addition, it also plans to develop Indonesia as a strategic sourcing hub to expand the supply chain base for other Una Brands portfolios.

“Indonesia is one of Una Brands' main priorities. We not only see an opportunity to acquire the best local brands but also help them to expand in Indonesia and globally, and make Indonesia the world's leading brand strategic sourcing hub for our other portfolio outside sourcing hubs which is currently in China," said Una Brands Founder & CEO Kiren Tanna in an official statement.

The company itself has a presence in nine markets with a focus on the Asia Pacific market, with headquarters in Singapore, then Malaysia, Australia, China, India, Taiwan, Korea, and Japan with more than 100 employees. Indonesia is the ninth country entered by the new company operating this year.

Separately, when contacted DailySocial.id, Tanna said the Una Brands team in Indonesia has actually been operating since October 2021 and has five employees. There is already one brand that has been finalized by the company, and nine other brands are in the final stage due diligence. "As for Una Brands globally, we have successfully acquired more than 20 brands since January 2021."

With the announced investment commitment, Una Brands will acquire potential local brands with a projected monthly turnover of at least IDR 400 million, selling through popular e-commerce channels such as Tokopedia, Lazada, Shopee, and Shopify. According to him, there is no limit ticket sizes which will be disbursed for one brand as long as the brand is included in the investment criteria at Una Brands.

“We are here to bring a new option where the acquisition by Una Brands not only provides full exit in cash and profit sharing for entrepreneurs, but also protect legacy which has been created all this time, even raised legacy take it to the next level through the Una Brands ecosystem.”

After the acquisition process, Una Brands through its technology will optimize brand performance, including Branding, marketing, supply chain, to procurement. As well as, expanding distribution targets domestically and internationally within the scope of Asia Pacific, America, and Europe with a 10-fold growth target in sales value and profits.

“The targeted business sectors are daily necessities, such as housing and housing needs, beauty and body care, baby, child and pet needs, sports, and outdoor activities. However, Una Brands also remains open to acquiring businesses outside these categories.”

Supported by growth E-commerce

Una Brands is not the first player to enter the segment "e-commerce roll-ups" in Indonesia, there are already hyperfast and OpenLabs. In comparison, in the global market, the concept adopted by the three refers to the template created by Thrasio, a similar player from the United States. Not only Indonesia, template This is also widely adopted in each player in other countries.

More Coverage:

According to 10Club Co-Founder and CEO Bhavna Suresh, one of the players e-commerce rollup India, the spread of this business concept is supported by the increasingly mature ecosystem E-commerce. They act as new era brand aggregators, acquiring promising D2C companies to ensure operational excellence and rapid growth, thereby creating value for investors.

This format is very different from traditional venture capital firm operations. VCs invest in all types of startups (good online nor offline) and provide strategic guidance, but the founders run it. On the other hand, the company e-commerce rollup acquire leads online, provide infrastructure assistance, and a team of experts to take business to new heights.

In Indonesia itself, it is predicted that local D2C brands will remain an attractive segment in the development of the industry E-commerceMoreover, its penetration continues to show an increasing trend in Indonesia. Refer to the report e-Conomy 2021, E-commerce will remain the biggest driver of the digital economy in the country. The sector is predicted to grow from $35 billion in 2020 to $53 billion in 2021. The CAGR of the sector is projected to increase by 18% to $104 billion by 2025.

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