Indonesian online B2B marketplace Ralali said it had raised $7 million in a funding round led by Japan’s SBI Group, Southeast Asian VC Addventures and global incubator Digital Garage, confirming a report by this portal in July.
The fresh fund will be used to accelerate Ralali.com’s mission to serve Indonesia’s 30 million SMEs and expansion towards global market by providing wider business segments solutions, the startup said in a release.
One of its expansion plans is to penetrate the Thailand market in collaboration with SCG (Siam Cement Group), the parent company of Addventures. SCG is one of the leaders in building materials and industrial supplies in Thailand, and Ralali.com will leverage the business network of SCG to start this expansion. This collaboration expected to happen around Q1 2019 starting with building materials and MRO categories first.
Joseph Aditya, CEO of Ralali.com said, “B2B ecommerce platform in emerging market is still fragmented in terms of supply chain, we strive to enable business to have better integrations in terms of products offering combined with the services in one platform. Achieving this we target to reach $1B of gross sales by 2020.”
Founded in 2013, Ralali provides a B2B ecommerce platform for manufacturers to sell directly to shop owners and merchants. It connects around 150,000 resellers, wholesalers, retailers, and transformers. With more than 10,000 suppliers in 20 cities, the annual transactions have grown 5 times than previous year, with an average basket size per transaction around $2,000.
Ralali founder Joseph Adiyta says the startup has expanded beyond MRO (maintenance, repair and operation and office supplies) to other business segmentation such as food supplies, building material, and automotive supplies.
Commenting on the investment in Ralali, SBI Investment Executive officer Tomoyuki Nii said: ““We believe the B2B e-Commerce platform will have a promising growth and we can support the company in the area of fintech such as introducing a financial lending platform to it.”
The investment makes Ralali SBI’s latest Indonesian portfolio company, after the Japanese giant had earlier announced investments in fintech firms Taralite and Investree. Last month, SBI chief Indonesia representative Kento Tokimori told this portal that the firm is looking to make up to four investments in Indonesian startups by the end of the year.
Ralali had last raised $2.5 million in June 2015 from Beenos Partners, Cyber Venture Partners and East Ventures. In July, DEALSTREETASIA first reported that Ralali was in talks to raise $5-10 million for its Series B round, according to two people aware of the development.