Small business owners are facing many challenges in the world of social media in this era of growing online businesses. Although platforms like Instagram offer a large audience and an attractive medium to showcase products, they are fundamentally not designed for business.
Therefore, entrepreneurs who manage various aspects of their business alone, from payment and shipping to customer service, face many difficulties.
These tasks can be complex and time-consuming, especially for solopreneurs. 63% of Millennials and Gen Z want to start their own business and achieve financial independence.
The lack of integrated marketing tools on social media platforms creates a lot of difficulties for those who do. Entrepreneurs find themselves juggling multiple roles, leading to inefficiencies and missed opportunities for grow
Not only is the challenge in managing the 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 in providing the tools necessary for effective business management and growth.
The beginning
To fill this gap, Rahul Gop and Anjan Kumar Patel, who studied together at IIT Bombay, founded Oyela in 2021. Gope's personal experience as an entrepreneur played a crucial role in shaping Oyela. 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 taught him many lessons in his entrepreneurial journey. A personal setback, combined with the growing trend of creative entrepreneurship in India, made him realize 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 Oyela. Oyela's primary goal is to turn social media platforms into powerful sales channels for small businesses. Gopp recognized that many small business owners face similar issues of visibility and functionality when trying to sell products through social media.
The startup's approach is to provide these small businesses with the tools and support they need to overcome these challenges. The platform focuses on helping sellers in the short term and building and strengthening their supply chain over time.
It empowers sellers, enabling them to manage their operations more effectively and grow their business sustainably. By addressing common obstacles faced by small business owners, Oyela aims to unlock the potential of social media as a powerful and effective platform for sales and business growth.
How does Oyela work?
The startup has emerged as a game changer for small business owners who primarily operate 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 streamline operations and promote growth.
For entrepreneurs like Witsi Witseivono, who initially struggled with the multifaceted demands of running an online store, Oyela automated various aspects of her 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.
Oyela 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 them with the tools they need for collaboration and operational streamlining. One of Oyela's key features is its collaboration technology tool, which allows stores to partner and gain visibility through mutual endorsements. This feature is especially beneficial for their popularity and customer base.
In addition, Oela integrates social media automation, particularly 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 attractive presence on social media, which is crucial for online businesses. Another key aspect of Oyela is the AI system designed to ensure the authenticity and trustworthiness of transactions on the platform. To identify and prevent fraudulent activities, the system scrutinizes various behavioral and sales parameters to protect both sellers and buyers.
By analyzing data from thousands of transactions, Oela has successfully reduced returns and refunds, leading to more consistent and increased sales for sellers on its platform. A focus on reliability is the cornerstone of Oela's approach, ensuring a safe and effective environment for small businesses to thrive in the competitive world of social commerce.
Funding and investors
In October 2023, Oela raised Rs 14.4 crore from early-stage venture capital fund Prime Venture Partners.
The startup previously said the capital raised will be aimed at developing e-commerce technology, building chatbots to sell on various platforms using public profiles like Pinterest, YouTube and Threads, as well as streamlining its supply chain to help people set up and expand their own Instagram.
Focusing on growth
Oyela claims that more than 20,000 Instagram-based stores have joined its platform. The startup said the growth was organic, meaning the stores were added without direct marketing or acquisition efforts from Oyela. Interestingly, many of these stores have reported significant increases in order volume, with some seeing 2.5 times more orders. Currently, more than 25,000 sellers are actively using the platform.
Over the next five years, Oyela aims to empower and establish two million social stores. By doing so, it hopes to capture a significant portion of India's e-commerce and social commerce markets, specifically targeting 1.6% of the e-commerce market and 9.5% of the social commerce market.
അടുത്ത അഞ്ച് വർഷത്തിനുള്ളിൽ, രണ്ട് ദശലക്ഷം സോഷ്യൽ സ്റ്റോറുകൾ ശാക്തീകരിക്കാനും സ്ഥാപിക്കാനും ഒയേല ലക്ഷ്യമിടുന്നു. അങ്ങനെ ചെയ്യുന്നതിലൂടെ, ഇന്ത്യയുടെ ഇ-കൊമേഴ്സ്, സോഷ്യൽ കൊമേഴ്സ് വിപണികളുടെ ഒരു പ്രധാന ഭാഗം പിടിച്ചെടുക്കാൻ കഴിയുമെന്ന് പ്രതീക്ഷിക്കുന്നു, പ്രത്യേകിച്ചും ഇ-കൊമേഴ്സ് വിപണിയുടെ 1.6% ഉം സോഷ്യൽ കൊമേഴ്സ് വിപണിയുടെ 9.5% ഉം ലക്ഷ്യമിടുന്നു.
The startup also expects to achieve gross merchandise value (GMV) of $3 million and revenue of $300,000 in FY24. In the wider market, Oyela faces competition from various companies. It competes with platforms like ETSY and Swiggy Minis. While Software as a Service (SaaS) solutions like Dukaan focus on the functional aspects, large marketplaces like MeeShow and Amazon are better suited for large sellers.
