1) Startup Profile : Ralali
The Indonesian startup Ralali transforms the procurement process to make it simpler and more transparent with its B2B e-commerce marketplace for industrial needs.
Ralali is a B2B industrial e-commerce platform with a 50,000 unique product listing. It has 700 different categories of products, mainly for maintenance, repair and operational. Products include working tools, power generators, safety equipment, test & measurement, medical devices, electrical tools etc.
Ralali provides complete and transparent industry product information, pricing, technical guidance, and post sales support. Ralali also provides a method of payment by bank transfer, and free shipping for Jakarta area.
Sellers on the platform don’t only sell their products but can also manage their inventory, track and analyse sales in real time, get market insights and run their own digital marketing campaign.
Ralali generates revenue by taking a 5 to 16 % transaction fee on each purchase. Ralali’s percentage cut is determined by the quantity of items in the shopper’s basket and overall value of the transaction.
In addition to the online marketplace, Ralali also has 3 operational offices, located in Serpong, Jelambar, and Glodok, to improve confidence in the eyes of consumers, who can make payments, returns, pick up items, and other business activities.
Date created: January 2013
Team: 100-150 employees
Funding: $2.5 million
Users: Contractors and businesses which need to sell/buy tools and equipment (manufacturers, contractors, facility and building maintenance, automotive players…). They focus first on 3 verticals: MRO, Business and Hospitality.
Markets: Indonesia first, Southeast Asia soon
Achievements: The average growth rate of daily traffic and Gross Merchandise Volume from Sept to Dec has been approximately 50%.
2) Startup Analysis : Ralali
Innovative level: 3/5
The founder, Joseph Aditya – who has been a practitioner in B2B business during the last few years – came up with the idea after experiencing difficulty in finding the right information when wanting to purchase some industrial tools and equipment. “I found out that most Indonesian companies have inefficient business process with a lot of loopholes that lead to purchase mistakes, frauds and delayed order fulfilment. While, on the other side, the sales and marketing division sometimes suffers from a lack of market knowledge because they don’t find the right marketing channels to reach their potential customers, or the company is unable to expand to other areas in Indonesia is very limited“. Looking at this problem, Joseph is trying to “simplify the procurement process by providing a one-stop shopping site for industrial tools and MRO products,” says Aditya. They don’t have head to head competitors in the market.
Funding : 2/5
Ralali raised a US $2.5 million series A funding round from Japan-based Beenos Plaza and CyberAgent Ventures.
Teams expertise: 4/5
CEO Joseph Aditya has over 12 years working experience in B2B and supply chain industry with many different roles from sales, marketing, operational, procurement, and strategic management. Prior to founding Ralali, Joseph was Managing Director at PT. Tridinamika Jaya Instrument – the authorized sole distributor of various products in the field of test equipment and measuring equipment in Indonesia. Since 2008, CTO Kelvin Wijaya has been in a wide range of industries including manufacturing, finance, gaming and digital agencies to mention a few. He was also a Tech Director in several companies including ruangguru.com and bounche.com.
Track record : 4/5
The company reported 300,000 monthly visitors last June and an average growth rate of daily traffic and Gross Merchandise Volume from Sept to Dec of approximately 50%.
Ralali has built an easily scalable marketplace. All storage and fulfilment are handled by the sellers, only the customer support services are the responsibility of Ralali.
3) Digital transformation potential of Ralali
Ralali transforms the industrial procurement process, making it simpler and more transparent. Usually, when procurement teams have to buy industrial tools and machines, they must stroll down to several physical marketplaces to check and compare prices, and there are risks of fraud as the items prices are not transparent.
Ralali offers a way to compare prices from several sellers to get the best deal and ensures a safe transaction since all sellers and buyers are verified by Ralali’s team and system. Users can track down order progress such as quotation, payment status, order status and track shipping. Ralali offers also various payment options.