Y Combinator-backed Peeba announced the setting up of its office in Indonesia, marking the first step of its Southeast Asia (SEA) expansion journey.

The online B2B wholesale marketplace wants to change the game for small retailers by enabling them to compete on the same footing as larger retailers through both online and offline channels. The company aims to do it by implementing a “sell first, pay later” model for small retailers.

In a press statement, Peeba says it that allows retail stores across Indonesia to buy products from thousands of curated
global and local brands on consignment, so they can pay for goods they are able to sell and return the rest to Peeba. According to the company, this means that small retailers do not need to incur hefty upfront payments, allowing them to stock high-quality products in their stores.

“Peeba takes care of end-to-end cross-border logistics, customs, duties and taxes while ensuring that goods are shipped to the retailer smoothly,” explains Jacky Lai, Founder and CEO of Peeba, in an email to e27.

“When small retailers are able to stock products from top brands, it makes them much more competitive as they can attract consumers a lot more effectively.”

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Lai also says that the platform uses machine learning to help predict what will sell well for stores in a particular category or area. “When retailers log on to Peeba, they automatically see recommendations that are most relevant to them.”

Founded in 2020 in Hong Kong, Peeba currently works with about 3,000 brands worldwide, connecting them with over 30,000 retail stores.

Understanding small businesses

When asked about the profiles of their targeted users, Lai describes them as independent online shops (such as Instagram and TikTok-based shops) and small retailers with physical stores.

“We are currently focused on serving retailers in the beauty, home and living, and baby and kids categories. We acquire them through a strong business development team that is in constant conversations with stakeholders in the retail ecosystem,” he says.

With regard to their revenue model, Lai says, “We make money when brands sell through retailers that choose to stock their products. Because of that, we review each and every brand application rigorously to make sure that they’re the right brand for the retailers that are on our platform.”

This year, Peeba aims to focus on its expansion plan in Indonesia, where the team has started hiring team members there.

“In the longer term, our goal is definitely to expand across Southeast Asia. We will take one step at a time and launch each market independently,” Lai closes.

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Image Credit: Peeba

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