Bizhare Immediately Forms Subsidiary to Manage "Fund"

Startups crowdfunding securities (SCF) Bizhare reveals plans to form fund (managed funds) as an innovative new investment instrument, in addition to SCF crowdfunding services in the form of bonds/sukuk and shares. The plan fund This will be announced in the first quarter of 2024.

To DailySocial.id, Bizhare CEO Heinrich Vincent conveyed the form fund This will later be separated from Bizhare, aka forming its own new legal entity. He is still not willing to reveal more about this.

"We are interested because so far many institutions want to collaborate but want to have their own instrument that is separate [from the SCF]. So far [via Bizhare Institution] they have done all the processes themselves, both from registration and selecting the UKM they want to invest in.invest," he said, during the Bizhare media gathering in Jakarta, yesterday (13/12).

This plan is actually in line with the company's initiatives after introducing Bizhare Institution this year. Bizhare Institution is an investment solution that allows institutions to invest directly into businesses through Bizhare through share and bond/sukuk schemes.

The institutions targeted as users are private companies, family office, cooperatives, venture capital, foundations, and other entities. Through the Bizhare Institution account, they can monitor portfolio performance every month every 25th and withdraw profits directly to the designated bank account, as well as other additional benefits.

This step is an alternative for portfolio diversification into various types of real industries and securities issuers with quite attractive returns beyond the current financial instruments. In his research, the returns for the time period and level of risk offered by SCF are more attractive than deposits and mutual funds.

"Bizhare Institution offers a new alternative for companies to have new, clearer investment alternatives if they want to enter for the long term. Previously, if you went the traditional route, returnthe general.”

Heinrich continued, the company's strategy to encourage investors from institutions is instinctively similar to what happens in the p2p lending industry. At the start of their presence, the strategy of many companies was to invite as many retail investors as possible to join and strengthen their networks.

"We were actually also strong in retail [when we were first established]. Institutions are usually new explore if there is already a lot of retail. So they always come in later, just like when they used p2p [lending].”

He did not provide further details about the Bizhare Institution clients who have joined to date, including: family office and venture capital companies (PMV). These PMVs joined because they were also encouraged by OJK regulations which required them to increase the share of stock investments in their portfolio.

Under the regulation, PMV is required to have a portfolio of share investment activities and/or investment through the purchase of convertible bonds at a minimum of 15% of PMV's total business activities. Recently, OJK saw the phenomenon of several PMVs who were more focused on financing businesses only.

“Most of the time family offices more interested in bonds/sukuk because they are only placed temporarily. "But if PMV has a mandate from the OJK to fulfill the share portion, they must comply with that."

Bizhare Achievements

Since operating in 2018, it is claimed that the total investment channeled through reaching Bizhare has reached IDR 200 billion for 120 MSME publishers until October 2023. Around 60%-70% of this total investment is stock investment and the rest is in the form of bonds/sukuk. Then, there are more than 200 thousand registered retail investors on Bizhare.

The company provides a variety of investments, ranging from franchise businesses, MSMEs, to startups through offering shares, bonds and sukuk, with affordable capital. Some of the projects include Holycow, Bam Cargo, Sour Sally, Ubeatz, Pempek Farina, Shuka Grill, film funding to sukuk projects from private corporate vendors, regional government, BUMN/BUMD and ministerial tenders.

In order to expand its business reach, the company is currently applying for a sharia funding service unit permit at the OJK. If this permission is obtained, the segmentation of MSME businesses that can be funded will be broader, including the sharia economic ecosystem itself.

"In the stock market, when the market is volatile, many foreign investors return to their home countries. But in Bizhare the basic foundation is MSMEs, so the consumption cycle is local too. If local consumption is high, our MSMEs will be more advanced. "For this reason, Bizhare is trying to control inflation, that's why we created Bizhare Institutions so that we don't have to be afraid of the global economy," he concluded.

On November 21 yesterday, the company announced further funding with an undisclosed amount. This round was led by Kejora Capital and SBI Holdings through the SBI-Kejora Orbit Fund. Also followed by several previous investors, such as Telkomsel Innovation Partners, AngelCentral, and several other strategic investors.