Lightspeed, Sequoia India join $20m round in Indonesian ecommerce startup Ula

Ula, an Indonesia-based ecommerce startup, announced it has raised US$20 million in a series A funding round led by Quona Capital and B Capital Group.

Nipun Mehra, co-founder and CEO of Ula / Photo credit: Ula

Existing investors including Lightspeed India and Sequoia Capital India also participated in the funding round.

Ula provides microretailers with simple tools and technology that digitizes their supply chain, inventory, and working capital management. It also offers small retailers a full catalog of physical goods through an ecommerce application and a doorstep service, allowing these shops to carry less inventory.

Funds raised from the new financing round will be used to to increase the company’s geographical footprint, expand its suite of products and services, and move into new categories.

“Small stores are deeply integrated into the economic and cultural fabric of Indonesia,” said Nipun Mehra, co-founder and CEO of Ula. “[These entrepreneurs’] small scale, limited upstream product availability, high prices, poor service, and limited working capital make them the most vulnerable segment of the retail value chain.”

Launched in January 2020 with teams in Indonesia, India, and Singapore, Ula is roping in talent across key roles in category management, analytics, credit, and city profit and loss in Indonesia. The ecommerce firm claims to have served over 20,000 stores across the nation.

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The company operates in Indonesia’s retail market and is looking to make the most of the booming sector, which is expected to grow by US$37.3 billion over the next four years.