The financial terms of the deal, including the transaction value, were not disclosed.
The deal is likely to provide an exit to Orami investors, which include Sinar Mas Digital Ventures (SMDV), Gobi Partners, Facebook co-founder Eduardo Saverin, Ardent Capital, and Velos Partners.
Having set out as an e-commerce platform for mother and baby products, Orami now offers a combination of commerce, content, and community for parents. It claims to have over 5 million monthly active users on its platform.
The Indonesian firm had been in the market to raise $15 million for its expansion. Its CEO Ferry Tenka said the company sees the deal as “a really big opportunity to accelerate Orami’s growth” that will enable it to accommodate the needs of brands and consumers.
SIRCLO helps brands sell online through a variety of solutions, including SIRCLO Store, which caters to SMEs, and SIRCLO Commerce, which helps enterprise brands enter online distribution channels.
Following the acquisition, Orami will operate as an independent entity integrated with SIRCLO’s line of services. Tenka will be taking on a new role as the chief marketing officer at SIRCLO, while Orami president Hendrawan Kartika will become the new chief financial officer at SIRCLO.
The companies said they will leverage their expertise to offer end-to-end digital services to brands for increasing visibility, expanding product categories and tapping into a wider pool of consumers.
“This corporate action can expand the enabler services that SIRCLO offers to brand owners who are seeking to enter the online market. Orami has an online shopping site that facilitates established brands from the Mom and Baby category in selling their products. Therefore, we have a joint mission to combine our strengths in helping brands sell online in a more strategic, scalable, and efficient manner,” said SIRCLO founder and CEO Brian Marshall.
Despite the advent of COVID-19 last year, the year 2020 proved to be an eventful year for SIRCLO. The company announced a merger with e-commerce solutions startup ICUBE in June and sealed a $6 million Series B funding round two months later backed by East Ventures, OCBC NISP Ventura, Skystar Capital, Sinar Mas Land, and others.
By the end of the year, SIRCLO claims to have recorded up to a fourfold increase in transactions, which helped it achieve a positive net operating income with a combined turnover of 3.3 trillion rupiah.
“The acquisition of Orami by SIRCLO is a strategic step that will accelerate SIRCLO’s capabilities in better serving brand owners and SMEs. SIRCLO holds the right position and is executing at the primetime of digital transformation,” said East Ventures co-founder and managing partner Willson Cuaca, whose firm is an early investor in both companies.
In its lines of business, SIRCLO sees market competition from Indies Capital-backed aCommerce, a Bangkok-based brand e-commerce enabler that operates in all the key markets in Southeast Asia, while Alibaba-affiliate Jet Commerce has also forayed into the e-commerce solutions space in Indonesia.