Jakarta. Una Brands announced on Monday it has pledged Rp 500 billion ($35 million) spending in 2022 to support Indonesian brands through acquisition, working capital injection, operational support, and international expansion with the mission to make them global, well-loved, and enduring household names.
The e-commerce aggregator also plans to make Indonesia a strategic sourcing hub to expand the supply base of its current brand portfolio after sealing exclusive agreements with multiple brands in the country and is targeting to acquire 12 to 15 brands in 2022.
“Indonesia is one of Una Brands' top priorities. We see an opportunity not only to acquire great local brands and help them expand in Indonesia and globally, but also in making Indonesia a strategic sourcing hub for brands in our portfolio in addition to our China sourcing hub," Kiren Tanna, Co-Founder & CEO of Una Brands, said in a statement.
Una Brands is currently present in nine markets, including Indonesia, Singapore, Malaysia, Australia, China, India, Taiwan, Korea, and Japan. Since its launch in early 2021, Una Brands has secured a total funding of US$55 million from several leading investors, including Indonesian venture capital firm Alpha JWC Ventures.
In its operations, Una Brands takes the acquisition route of local brands that have been selling products via e-commerce channels such as Tokopedia, Lazada, Shopee, and Shopify.
The company said it seeks to improve the marketing system, supply chain, and logistics operations of acquired brands and a tenfold increase in their revenue and profit by expanding markets to the Asia-Pacific region and Europe.
In less than a year, Una Brands has acquired more than 20 brands across categories such as Baby, Home and Living, and Beauty; and has increased the sales and profits of these brands by over 50 percent.
"The business model we offer is flexible and would be very profitable for entrepreneurs who are looking for an exit plan from their business,” Kiren said.
“We are providing a new option for entrepreneurs where an acquisition by Una Brands not only offers a full cash exit with profit-sharing as the brand grows with us but also protects and elevates the brand’s legacy to a whole new level through our ecosystem.”
With the committed Rp 500 billion in capital, Una Brands plans to acquire potential local brands with a projected monthly turnover of at least Rp 400 million in the sector of daily necessities, such as home and housing needs; beauty and body care; pet; babies and children; sport; and outdoor activities.
“Small and medium enterprises are the backbone of the Indonesian economy. As an investor from and with a focus in Indonesia, we believe Una Brands can bring the best Indonesian brands to the global stage. Not only that, but we also hope that the Una Brands movement can inspire a new generation of entrepreneurs in Indonesia to start pursuing their dreams," said Jefrey Joe, Co-Founder & General Partner of Alpha JWC Ventures.