A total of 134 individuals, or nearly 23% of Ula’s workforce, were let go. The B2B ecommerce platform attributed its decision to market unpredictability, fluctuating commodity costs, supply constraints, legislative changes, and rising crude oil prices.
The company issued a statement stating that it worked to save expenses and changed its server technology, travel regulations, sales procedures, supply chain, and sales methods. These efforts, however, were insufficient to address the company’s problems.
Ula will “streamline” its clientele and product categories in the next years. “We will need to build new monetization capabilities and new higher-margin businesses,” the company said.
Employees who are affected will be given severance payouts as well as assistance with finding jobs, healthcare, and immigration.
Ula, which was introduced in 2020, offers neighborhood mom-and-pop stores (referred to as warungs) a comprehensive selection of real items through an e-commerce application and a doorstep service.
Alan Wong, Derry Sakti, Nipun Mehra, and Riky Tenggara founded the business. It received $110 million in US dollars in a series B investment round last year from investors including Tiger Global, Tencent, and Bezos Expeditions.
