Una Brands Launches with $40M Funding for APAC E-commerce Expansion

Una Brands Secures $40 Million to Consolidate APAC E-commerce Businesses

A significant trend in recent funding has centered on companies focused on consolidating smaller e-commerce brands. While many prominent startups in this sector, such as Thrasio, Berlin Brands Group, and Branded Group, primarily target Amazon Marketplace sellers, the e-commerce environment in the Asia-Pacific region is considerably more diverse.

Fragmented E-commerce Landscape in APAC

Sellers throughout the Asia-Pacific region utilize a variety of platforms, including Tokopedia, Lazada, Shopee, Rakuten, and eBay, depending on their geographic location. Una Brands is positioned to capitalize on this fragmentation. Kiren Tanna, a co-founder and former chief executive officer of Rocket Internet Asia, states that the startup maintains a “platform agnostic” approach.

This means Una Brands actively searches across numerous marketplaces – and platforms like Shopify, Magento, and WooCommerce – to identify potential acquisition targets.

Recent Funding and Investors

Una Brands recently announced the completion of a $40 million funding round, comprised of both equity and debt. Key investors in this round include 500 Startups, Kingsway Capital, 468 Capital, Presight Capital, Global Founders Capital, and Maximilian Bitner.

Bitner previously served as CEO of Lazada and currently holds the same position at Vestiaire Collective, a secondhand fashion platform.

Strategic Use of Debt Financing

The specific allocation between equity and debt within the funding round was not disclosed. Similar to other e-commerce aggregators, including Thrasio, Una Brands utilized debt financing for acquisitions as a non-dilutive funding method.

The raised capital will also facilitate aggressive hiring to support the evaluation of brands within their acquisition pipeline.

Expansion Plans Across Southeast Asia

Una Brands currently maintains teams in Singapore, Malaysia, and Australia. Plans are underway to expand operations throughout Southeast Asia before extending into Taiwan, Japan, and South Korea.

Founding Team and Market Opportunity

Una Brands was founded by Kiren Tanna, alongside Adrian Johnston, Kushal Patel, Tobias Heusch, and Srinivasan Shridharan. Tanna, who also founded Foodpanda and ZEN Rooms, estimates that over 10 million third-party sellers operate across various platforms in the Asia-Pacific region.

Focus on the APAC Market

Tanna emphasized that sellers in Asia frequently utilize multiple platforms, unlike their counterparts who primarily focus on Amazon. “We saw a significant gap in the market,” Tanna explained to TechCrunch, “where e-commerce is experiencing rapid growth, but Western players are unable to comprehensively assess every platform.”

This realization led to the decision to concentrate on the APAC region, launch the business there, and acquire sellers operating on multiple platforms.

Acquisition Criteria and Pricing

Una Brands targets brands generating annual revenue between $300,000 and $20 million. The company is open to a wide range of product categories, prioritizing those with strong SKUs and minimal seasonality – deliberately avoiding categories like fast fashion.

Offering prices for acquisitions typically range from approximately $600,000 to $3 million.

Preserving Brand Identity and Adding Value

Tanna stated that Una Brands intends to maintain acquired brands as independent entities, believing that “what’s working, we don’t change it.” The company aims to add value by tackling challenges that smaller brands, particularly those managed by one or two individuals, struggle to address.

This includes expanding into additional distribution channels and geographic markets.

Navigating Regional E-commerce Complexity

“For instance, in Indonesia, there are at least five or six key platforms that a seller should be present on, and often they aren’t,” Tanna clarified. “This is an area where we can provide assistance.”

Furthermore, Una Brands offers expertise in cross-border trade within Southeast Asia, navigating complex regulations related to customs, import restrictions, and duties – a challenge many sellers cannot independently overcome.

Data Challenges and Technological Solutions

Unlike Amazon FBA roll-up companies that benefit from Amazon Marketplace analytics, Una Brands operates with more fragmented data sources for revenue, costs, rankings, and customer reviews due to its multi-platform approach.

To address this, the company is currently developing technology to automate its valuation process and will establish local teams in each of its target markets.

Despite the complexity, Una Brands aims to complete acquisitions within five weeks, typically issuing an offer within two to three days.

Adapting Acquisition Strategies to the APAC Market

In markets like the United States, where Amazon dominates, many entrepreneurs launch FBA brands with the intention of selling them for a profit within a few years. This trend is leveraged by Thrasio and other Amazon roll-up startups.

However, this practice is less prevalent in Una Brands’ target markets, necessitating alternative acquisition strategies.

Flexible Deal Structures and Seller Collaboration

While Una Brands typically acquires 100% of brands, it also offers profit-sharing models to appeal to potential sellers. This involves an initial lump-sum payment for the majority of the business, followed by additional earnings as Una Brands scales the brand.

Tanna noted that Una Brands generally continues to collaborate with sellers in a consulting capacity for three to six months following the sale.

Educating Sellers on the Benefits of Acquisition

“Amazon players are well aware that they can operate a product for four to five years and then potentially secure a multi-million dollar exit, allowing them to launch another product or take a break,” Tanna explained. “Asian sellers are less familiar with this concept, so we view this as an educational process to demonstrate the advantages of selling to us.”