In this era of growing online businesses, small business owners face many challenges in the world of social media. Platforms like Instagram offer a large audience and an attractive medium to showcase products, but basically it's not designed for business.

Therefore, entrepreneurs who single-handedly manage various aspects of their business, from payment and shipping to customer service, face many difficulties.

These tasks are complex and time-consuming, especially for those who run the business alone. 63% of Millennials and Gen Z want to start their own business and gain financial independence.

The lack of integrated commercial tools on social media platforms is creating a lot of difficulties for such people. Entrepreneurs find themselves juggling multiple roles, leading to inefficiencies and missed opportunities for growth.

The challenge lies not only in managing day-to-day operations, but also in expanding the reach of the business and improving customer engagement. Traditional social media platforms, while popular, fall short of providing the tools needed for effective business management and growth.

The beginning

To bridge this gap, Ooyala was founded in 2021 by Rahul Gope and Anjan Kumar Patel, who studied together at IIT Bombay. Gopay's personal experience as an entrepreneur played a crucial role in shaping Ooyala. He previously ran an online pearl boutique with his parents in the Andaman Islands.

Despite his efforts, Gope faced challenges in gaining visibility and managing operations, which eventually led to the closure of his business. This experience has taught him a lot in his career. The personal setback, combined with the growing trend of creative entrepreneurship in India, made him realise that the difficulties he faced were not unique to him but faced by many others in the entrepreneurial community.

This realization is the impetus to start Ooyala. Ooyala's primary goal is to turn social media platforms into powerful sales channels for small businesses. Gope recognized that many small business owners face similar issues of visibility and viability when trying to sell products via social media.

The startup's approach is to provide these small businesses with the tools and support they need to survive these challenges. The platform focuses on helping sellers in the short term and build and strengthen their supply chain over time.

It empowers sellers, enabling them to manage their operations more effectively and grow their business sustainably. By addressing common barriers faced by small business owners, Ooyala aims to unlock the potential of social media as a powerful and effective platform for sales and business growth.

How does Ooyala work?

The startup has emerged as a game-changer for small business owners operating primarily on social media platforms. It has developed an online platform to transform the way businesses operate by offering a suite of tools and resources that facilitate operations and promote growth.

For entrepreneurs like Witsi Witsiwono, who initially struggled with the multifaceted demands of running an online store, Ooyala has automated various aspects of his business, from order processing to customer interactions. This enabled them to focus on product curation and presentation. This change led to a significant increase in their sales, jumping from 200 products sold per month to over 3,000 products.

Ooyala stands out with its unique offerings that specifically cater to the needs of small businesses. The platform helps these businesses set up and manage their digital storefronts, providing the necessary tools for collaboration and operational streamlining. One of the key features of Ooyala is its collaborative technology tool, which allows stores to partner and gain visibility through mutual approvals. This feature is especially beneficial for their popularity and customer base.

Additionally, Ooyala integrates social media automation, especially with Instagram, to increase the efficiency of product promotion and customer engagement. This automation includes exporting products as Instagram posts, streamlining interactions through direct messages, stories, and comments, and simplifying the order collection process.

This integration saves time and ensures a consistent and engaging presence on social media, which is crucial for online businesses. Another key aspect of Ooyala is its AI system designed to ensure the authenticity and reliability of transactions on the platform. This system closely examines various behavioral and sales parameters to identify and prevent fraudulent activities, protect sellers and buyers.

By analyzing data from thousands of transactions, Ooyala has successfully reduced returns and refunds, leading to more consistent and increased sales for sellers on its platform. Focusing on reliability is the cornerstone of Oella's approach, which ensures a safe and effective environment for small businesses to thrive in the competitive world of social commerce.

Funds and investors

In October 2023, Ooyala raised Rs. 14.4 crore from an early-stage venture capital fund called Prime Venture Partners.
The startup said it aims to use the capital raised to develop e-commerce technology and build chatbots to sell on various platforms using public profiles such as Pinterest, YouTube and Threads, as well as streamline the supply chain to help people set up and expand their own Instagram.

Focus on growth

Ooyala claims that more than 20,000 Instagram-based stores have joined its platform. The startup said that this growth has been organic, which means that these stores have been added without any direct marketing or acquisition efforts from Ooyala.

Interestingly, many of these stores have reported a significant increase in order volume, with some seeing 2.5 x more orders. Currently, more than 25,000 sellers are actively using the platform.

Over the next five years, Ooyala aims to empower and establish two million social stores. By doing so, it is expected to capture a significant portion of India's e-commerce and social commerce markets, specifically targeting 1.6 per cent of the e-commerce market and 9.5 per cent of the social commerce market.

The startup also expects to achieve a gross merchandise value (GMV) of $3 million and revenue of $300,000 in FY24. In the broader market, Ooyala faces competition from a variety of companies. It competes with platforms such as ETSY and Swiggy Minis. While software as a service (SaaS) solutions like Dukaan focus on the functional aspects, large marketplaces like Meesho and Amazon are more suited to large sellers.