Bizhare Targets Acquisition of New Funding at the End of the Year

Platform crowdfunding securities Bizhare revealed that they are currently seeking new funding with a target of fresh funds of $3-5 million. Bizhare aims to close its fundraising action later this year.

"We are exploring with several investors who are interested, but we haven't got any yet disclose. Our business model is actually headed path to profitability, and our [business] growth doesn't really have to be cash burning," Bizhare Co-Founder and CEO Heinrich Vincent told DailySocial.id.

Vincent continued, the funding will be used to accelerate the growth of Bizhare's business model, increase the scale of operations, and develop its product technology.

Bizhare has been operating since 2018 on a regular basis bootstrapping. The platform offers alternative funding for business owners with a choice of investment instruments ranging from stocks, bonds to sukuk.

In 2021, Bizhare launch the app mobile devices to increase investor growth.

The company is recorded as having collected total funding of IDR 179 billion from 127 business owners (publishers), has 209 thousand retail investors, and distributed IDR 13 billion in dividends as of May 2023. It claims that Bizhare will experience a 4-fold increase in annual revenue in 2022.

Collaboration

Based on data from the Financial Services Authority (OJK), total funds raised through the platform crowdfunding securities (SCF) has reached IDR 721,84 billion throughout 2022. This figure is up 75% from the previous year which amounted to IDR 412 billion.

With SCF penetration still low in Indonesia, continued Vincent, his party took the initiative to encourage collaboration with various financial institutions in the capital market and institutional investors. That way, not only retail investors are involved in the Bizhare platform.

So far, P2P lending tends to be used more by business actors in looking for alternative capital. OJK data records that distribution of P2P lending loans throughout 2022 will reach IDR 51,12 trillion.

"There has not been any collaboration between institutions and financial institutions in the capital market with SCF. It still exists blocker in regulations to bridge this. "We are currently encouraging the OJK on how financial institutions in the capital market can collaborate with each other," he added.

He also revealed that he is currently exploring cooperation with securities companies where they can participate in marketing securities, not only to public companies, but also to private companies. In this way, capital can be channeled to MSME players who currently contribute greatly to national GDP.

"The impact will be greater because it can be felt by the community. This should be our breakthrough in encouraging regulators to bridge this collaboration," he concluded.