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Nien Mehra is no stranger to e-commerce and technology investment. Originally from India, a series of advances in the profession led Mehra to Indonesia, where she found similar experiences in her home country. “India is like Indonesia, you have a lot of moms and pop stores in your area, and it’s a place to go shopping,” says Mehra. CASIA. Recognizing the potential for change in the way these micro-businesses work, Mehra plans to set up a B2B e-commerce platform in 2019 with three like-minded individuals. Go in? To help traditional retailers operate more efficiently and increase revenue and possibly expand their scope.
Ula may not yet be a household name, but its founding is based on Mehra’s extensive experience in e-commerce. A.D. After graduating from Stanford University in 2004, he was a software development engineer for Amazon. The engineer returned to his native India in 2012 to join Flipcar, becoming one of the largest e-commerce companies in India. While at FlipCart, the company developed ways to collaborate with small kiosks. At the time, the use of smartphones in this class was very low. “People like me may have a smartphone, but mom and pop store owners don’t, so they can’t do anything.”
Mehra’s technological journey continues in the capital of Sekoya, part of a group behind a number of investments in Indonesia, including the country’s largest technology companies such as Gojek, Tokopedia and Travaloka. I began to expose myself to Indonesia. A.D. I came to the country in 2019 and spent five months roaming the markets. I hired an interpreter, and we talked to various retailers. Indonesia has had a significant impact on technology in the retail sector, and this sector is poised for greater development and change, ”Mehra said.
As Ula set up, Mera collaborated with people she met along the way as a technologist and investor. The co-founders include Derry Saktin, who spent ten years overseeing P&G operations in Indonesia. Riky Tenggara, former executive at Lazada and aCommerce; And Alan Wong, who previously worked with Mahara on Amazon. “We all have the same interests and vision.”
Improving supply and supply chain
Ula runs a wholesale e-commerce marketplace for small and micro retailers. It helps kiosk owners to digitalize their supply chain and inventory management. Small retailers in emerging markets have a few unique characteristics, Mehra said. “They know their customers very well. Where you live, you know your name, even the ones you want to buy. This relationship cannot be easily replaced by technology, ”he said. “Second, their operation is very cost-effective; there are no air conditioners or staff Shop. They have no rent because they work in their own place and are usually below tax limits.
Normally, Shop Selling rice, instant noodles, cooking oil and packaged foods. Store household items such as laundry soap and dishwashing soap.
While that human touch Shop The neighborhood offers a picture, but the reality is that these small shops are in a weak spot on the big retailers. Inadequate supply, lack of affordable supply and poor supply chains are problems for moms and pop stores, especially in small towns. But Ula is changing that. Its application allows kiosk owners to order new products to be shipped directly. This solves one of the inefficiencies: in the past, Shop Operators had to close their shops during regular business hours by visiting wholesalers in person. This includes not only the cost of time but also the cost of renting a car and gas.
Ula is available after payment. Shop Owners with limited working capital. “If you run a small shop, there is usually no commercial bank account, so you have to take the money out of your personal savings to buy stock,” Mehra said. “Moreover, most kiosk owners do not have credit and digital IDs, so it is difficult to get a loan from a bank. So we are trying to find more partners to help us solve this problem.
Mehra said kiosk partners can improve their revenue by about 15% if they use the app frequently. This is still less than our goal, as we want to help them increase their income by at least 30-40 percent. For a new customer, it takes some time to realize the impact, as they have to constantly use our resources to see improvements.
This trend has often caught the attention of investors. Ula raised its first $ 10.5 million investment in June 2020 from Sekoya India and LightSpid India. Seven months later, Startup covered $ 20 million in a series of grants led by B Capital Group and Quona Capital.
Indian interest in Indonesian retail
Over the past two years, investors and entrepreneurs from India have been pouring money into Indonesian startups. In addition to big-name VCs, Ula is supported by the co-founders of Unicorn Udan – Vibhav Gupta, Amod Malvia and Sujet Kumer in India. Similar Indonesian startups like BukuKas and BukuWarung have Indian investors. Mehra himself is the investor of the Bukukas angel. This increase in capital has led to evolution in the traditional retail sector, which is an important part of Indonesia’s economy.
Kiosks are an integral part of daily life in these countries. In India, 80% of retail transactions take place Kirana Stores in Indonesia account for about 70-75 percent, Mehra said. “While the U.S. retail market was organized before the Internet, technology is emerging in the emerging markets of emerging markets, giving new kiosk owners new information. The change is taking place now. ”
Although India and Indonesia have many similarities in how they work in neighboring shops, there are minute differences. For one, India has a more mature digital payment ecosystem than Indonesia. And India is one of the most populous countries, and Indonesia is an island country with thousands of islands, which means logistics is very complicated.
To meet this challenge, Ula will work with local partners and communities to identify specific geographical areas in their regions and cities and facilitate smooth logistics processes.
Ula now works with more than 30,000 traditional retailers, most of which are located in Eastern Java, some in Central and Western Java. “As we move forward, we want to strengthen our presence in these regions by expanding our production segments to meet diverse needs. We will add additional categories such as clothing and electronics and plan to expand it geographically next year, ”said Meha.
This article is part of KrASIA’s “Beginning Stories” series, where KrASIA writers talk to the founders of technology companies in South and Southeast Asia.
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