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Open Labs to spend $100M to acquire more local brands
The homegrown brand aggregator plans to acquire controlling stakes or full ownership of small enterprises, depending on the founders’ preferences.
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Brand aggregator Open Labs CEO Jeffrey Yuwono (top left) attends a press conference on Oct. 28, 2021. He told reporters that the company had around $100 million to spend on acquiring small businesses. (Open Labs/Screenshot)
H
omegrown brand aggregator Open Labs plans to spend US$100 million (Rp 1.42 trillion) to acquire just over half or full ownership of local small businesses with the aim to upscale their branding and operations.
Open Labs founder and CEO Jeffrey Yuwono told reporters on Thursday that his firm was seeking local brands that had Rp 3 billion in annual revenue, positive margins, rapid growth and were among the best in their category.
The firm had already invested in health care, home appliances, fashion and e-commerce businesses and was looking to acquire more companies.
“If they are too small, they do not suit us. But that figure [Rp 3 billion in annual revenue] is a minimum, because we have met brands with sales nearing Rp 100 billion a year and up,” Jeffrey said during a press conference.
Open Labs would offer to buy 51 percent or 100 percent of these businesses. In the case of a 51 percent acquisition, the founder could stay as CEO and run the operations on a daily basis, while Open Labs would act as commissioners for that company and do the high-level planning.
“We do not sell anything. Therefore, we need the 51 percent minimum ownership to consolidate our finances. Each partner’s sales and net profit are also Open Labs’ sales and net profit,” Jeffrey said.
Read also: Trend of small businesses going online remains strong: Study
