Singapore eCommerce acquirer Una Brands has launched in Indonesia, along with SG$35 million set aside to support local brands through acquisitions, capital injection and operational support.
According to multiple sources such as The Jakarta Post and Jakarta Globe, Una Brands is looking to acquire local brands with a projected monthly turnover of at least IDR 400 million (SG$37,908) in the sector of daily necessities, such as home and housing needs, beauty and body care, pet, babies and children, sport, and outdoor activities. Una Brands has already signed exclusive agreements with several brands in Indonesia, and aims to acquire 12 to 15 more this year, both sources reported.
The Jakarta Post quoted Una Brands co-founder and CEO Kiren Tanna, stating that the company not only sees an opportunity to acquire great local brands and help them expand locally and globally, but also make Indonesia a strategic sourcing hub for brands in its portfolio; in addition to its China sourcing hub. Tanna also added that Una Brands' business model will be very profitable for entrepreneurs who are looking for an exit plan from their business; The Jakarta Post reported.
Since its launch in early 2021, Una Brands has established its footprint in nine markets, including Indonesia, Singapore, Malaysia, Australia, China, India, Taiwan, Korea, and Japan. It has also acquired over 20 brands - across categories such as baby, home and living, and beauty - and increased their sales and profits by over 50%. According to Jakarta Globe, it has also secured a total funding of US$55 million from several leading investors, including Indonesian venture capital firm Alpha JWC Ventures.
Indonesia remains lucrative for investors as the market continues to be one of the most vibrant digital financial services markets due to its relatively open regulatory framework and is showing rapid growth across fintech and digital platforms. According to a study by Google, Temasek, and Bain & Company, digital financial services are also becoming critical enablers, with 98% of digital merchants now accepting digital payments and 59% of digital merchants now adopting digital lending solutions. Many are also embracing digital tools to engage with their customers, with 69% expecting to increase usage of digital marketing tools in the next five years and 45% saying they will increase investment in website analytics. At the same time, 43% said they will invest in digital analytics in the next five years.
Separately, Indonesian tech giant Bukalapak, along with Grab, Carro and Growtheum Capital Partners, invested in Allo Bank Indonesia, to accelerate the expansion of credit services across Indonesia. Bank Allo is a fully licensed bank offering personal, business, joint accounts including Paylater, InstantCash, savings and time deposits, e-wallet, top Up, payment and transfer services. The latest capital raising will increase Bank Allo’s core capital to over IDR six trillion, making Allo Bank one of the most well-capitalised digital banks in the country. Last month also saw WeLab, a pan-Asian fintech platform, take on the Indonesia market with the acquisition of Bank Jasa Jakarta, a commercial bank in Indonesia. Through the acquisition, it plans to launch its second digital bank in Asia further to the launch of WeLab Bank in Hong Kong. WeLab plans to launch this second digital bank in Asia in the second half of this year.
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