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Fintech SCF firm Danamart seeks eastern Indonesian investors
SCF firm Danamart plans to add investors in eastern Indonesia and double its total investors to 2,000 this year.
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H
omegrown fintech firm Danamart, which deals in securities crowdfunding (SCF), plans to add investors in eastern Indonesia, following its growth in the past five months, according to the company’s founder and CEO Patrick Gunadi.
Patrick told reporters in Jakarta on Thursday that the platform had garnered nearly 1,000 investors since it acquired a new permit in February, and it was extending its reach from Java to Bali, Sumatra and Sulawesi.
Danamart currently has 16 small and medium enterprises (SMEs) registered as issuers, or businesses using its platform to court investors, four of which have successfully secured enough funding.
“We are targeting to have 50 issuers by the end of the year and to double the number of investors to around 2,000,” said Patrick.
SCF is often seen as a prelude to the stock market, as the platform acts as a “feeder” that helps smaller businesses find investors and grow before they enter the stock market.
Through the SCF platform, SMEs can issue investment instruments in the form of shares, bonds or sukuk (sharia-compliant bonds).
“SCF firms could act as incubators and accelerators for small businesses in order to scale up and secure enough funds to do the actual initial public offering (IPO),” said Patrick.
SCF is similar to peer-to-peer (P2P) lending, as both involve interactions between investors and businesses, which Patrick acknowledged has often led to public misconceptions about the distinction between the two.
In response, Patrick emphasized that SCF investments focus on offering investors securities as proof of ownership, akin to the process of investing in the stock market, setting them apart from loans from banks or non-bank financial institutions.
Another difference lies in how the Financial Services Authority (OJK) oversees SCF firms, he said.
“While P2P lending operates under OJK’s non-bank financial industry [supervision], SCF falls under the regulator’s capital market [supervision],” Patrick said.
He added, SCF firms are supported by the Indonesian Central Securities Depository (KSEI), which provides securities depository and transaction settlement services and manages the accounts of securities companies and custodian banks.
Patrick believed the SCF industry could undergo significant growth in the country, citing the limited players within the industry and the immense potential for SMEs.
According to OJK, there are currently 17 SCF firms in Indonesia. Danamart said it is the first securities crowdfunding platform in the country to focus on environmental, social and governance (ESG), aiming to cater to investors looking for sustainable investments.
OJK data shows the country’s SCF industries have raised Rp 911.35 billion (US$60.74 million) as of July 7 from 156,632 investors.
