Industrial goods e-store Ralali snags seed funding from East Ventures
Drills, chain saws and anemometers. Well, this startup wants to help businesses looking for such goods to have a much easier timeBy Elaine Huang 19 May, 2014
Launched in July 2013, Indonesia-based online store for industrial supplies Ralali.com has today announced raising seed funding from East Ventures, an early-stage startup fund. The investment amount was not disclosed.
Joseph Aditya, Founder and CEO, Ralali, told e27 in an email interview that the funds will be used for expansion and marketing efforts, as well as to build more infrastructure.
He added, “We chose (East Ventures) among others, not just because of financial only, but because somehow they can understand our vision. (East Ventures) also (has its) reputation in Southeast Asia and been around for quite some time in Indonesia.” (Sic)
With more than 80 customer brands on board, the platform supplies industrial goods across 15 product categories, including hardware tools, material handling, electrical, lighting, security equipment and navigation tools.
Like most e-commerce startups, Ralali generates revenue through online sales of the goods listed. “We (have) already generated income and (it has been) quite significant in the last six months,” said Aditya, who previously worked as a business-to-business industrial supplier. His customers are mostly businesses looking to procure such tools for work purposes.
Even though online is the way to go for marketplaces, he believes in the power of a complementary offline presence. Thus, customers can also pick up items, make payment and check out other products at an industrial equipment centre in Jakarta, Indonesia. He noted, “Our order value is much higher than (an) average e-commerce basket size, and customer trust is a big issue we need to address.”
He added that there are plans to expand to other countries in Southeast Asia in the future. However, the company will focus on Indonesia for now.