Ula, the Indonesian warung-tech startup, has introduced its resolution to wind down operations and return roughly 30% of the full capital raised to its buyers.
The corporate’s co-founder and CEO, Nipun Mehra, together with the founding group, is about to embark on a brand new enterprise unrelated to warung-tech or the B2B market.
Since its inception, Ula has raised over US$141 million from outstanding buyers, together with Bezos Expeditions, Prosus Ventures, Tencent, Peak XV (previously Sequoia India), Lightspeed Enterprise Companions, B Capital, Northstar, and AC Ventures.
As of late 2022, Ula held US$74.26 million in money and money equivalents, a determine that now stands at roughly US$50 million, based on DealStreetAsia.
Buyers have been given the choice to both redeem their investments at 30% on the greenback or roll them into Mehra’s upcoming enterprise.
“We’re deeply grateful to our shareholders and companions for his or her continued perception in our imaginative and prescient,”
mentioned Mehra in an announcement.
“This restructuring is the beginning of a brand new journey – one fuelled by the identical values which have at all times guided us: innovation, resilience, and a dedication to driving influence in our markets.”
Ula’s resolution follows challenges in reaching profitability amid excessive operational prices, shifts in demand, and rising competitors.
The corporate had explored numerous strategic pivots, together with exporting meals and beverage merchandise to the US and potential acquisitions, however these efforts didn’t yield the mandatory outcomes.
By late 2023, Ula had paused operations and carried out workforce reductions, marking the start of its gradual wind-down.
Business consultants acknowledge the difficulties confronted by warung-tech startups in Indonesia, with a number of corporations both pivoting or transitioning to asset-light fashions.
Regardless of its preliminary success in serving over 100,000 warungs throughout East, Central, and West Java, Ula in the end couldn’t set up a sustainable enterprise mannequin.
Whereas the specifics of Mehra’s subsequent enterprise stay undisclosed, business sources counsel it might be based mostly in India and give attention to synthetic intelligence (AI), with potential backing from new buyers.
Featured picture credit score: edited from Ula