Oyela: Empowering Small Brands in the Digital Marketplace

In the dynamic landscape of online entrepreneurship, Gurugram-based startup Oyela has emerged as a game-changer, assisting new-age social media stores and product creators in scaling their businesses through its innovative network-driven platform.

Overcoming Challenges on Social Media Platforms

Vitsi Vitseivono, a 26-year-old entrepreneur venturing into women's clothing on Instagram, found herself grappling with the complexities of managing every aspect of her online store. Oyela stepped in to alleviate the burden, providing tools, resources, and mentorship to streamline operations. According to Vitseivono, this automation significantly boosted sales, propelling her from 200 to over 3,000 monthly product sales. Oyela's intervention allowed her to transition seamlessly into the physical retail space.

Key Offerings and Collaborative Commerce

With a dedicated team of 40 professionals, Oyela facilitates the setup and management of digital storefronts. Their collaboration tech tool enables businesses to collaborate, gaining visibility through endorsements on each other's storefronts. The integration of social media automation features streamlines product exports to Instagram, automates customer interactions, and facilitates order collection through Instagram DMs, Stories, and comments.

Oyela's AI system plays a crucial role in building trust among buyers by identifying and blocking potential fraudulent sellers or transactions. By analysing 14 behavioural and sales parameters, the platform ensures a secure and trustworthy environment, with minimal returns and refunds.

Empowering Small-Scale Businesses

Oyela was founded in 2021 by IIT Bombay alumni Rahul Gope and Anjan Kumar Patel, who aimed to provide the tools and opportunities they wished they had during their entrepreneurial journey. Gope, who hails from the Andaman Islands, drew inspiration from his own experience running an online pearl boutique alongside his parents. The challenges he faced became the driving force behind Oyela's mission to convert social media platforms into highly effective sales channels.

Funding and Future Roadmap

In October 2023, Oyela secured Rs 14.4 crore in seed funding led by Prime Venture Partners. The startup plans to utilize the funds to enhance infrastructure and introduce new sales-enhancing features and services, further streamlining the supply chain. With over 25,000 sellers on its platform and organic growth of 20% in month-on-month revenue, Oyela envisions establishing and empowering two million social stores within the next five years.

Competitive Landscape and Projected Growth

Oyela competes with established players like ETSY and Swiggy Minis, offering a unique proposition tailored for small businesses. As the social and content commerce market in India is projected to reach $70 billion by 2030, Oyela aims to capture 1.6% of the ecommerce market and 9.5% of the social commerce market in India. The startup differentiates itself by onboarding sellers organically through collaborations, charging a fixed commission from sellers. The projected Revenue Run Rate for FY 2024 is $3 million in Gross Merchandise Value (GMV) and $300,000 in revenue. Oyela is poised to make a meaningful contribution to the ecommerce growth driven by Gen Z sellers in the coming years.