BTPN Syariah Ventura Chooses a Conservative Strategy, Aims for One Startup Every Year

BTPN Syariah Ventura, the investment vehicle of BPTN Syariah (BTPS), has chosen a conservative approach in investing in startups, targeting only one startup to be funded each year. Last year, through its debut, the company invested for Commerce in rounds pre-series B.

As for this year, BPTN Syariah Ventures is still selecting new candidates to be funded. Meanwhile, the company also ensures that there are no plans to re-fund the trade in the next round. Previously, it was reported that Trade was seeking a second round for Series B, which would attract a number of large corporations to invest their funds there.

"For us, we are already profitable because of the valuation [which has increased and the business is growing], then we will look for the next investment for startups that focus on rural areas. The board of directors is simple and efficient, the investment is only once a year. The most important thing is that this investment has a good impact on the group so it can be even better,” said Finance Director of BTPN Syariah Fachmi Achmad in a media briefing, last week (9/2).

Even though Fachmi was not willing to specify the identity of the startup. It is certain that his party is looking for startups that have a mission in line with the company's focus on empowering pre/prosperous communities in second and third tier cities. Its business segments start from EdTech, digital buying and selling, training, bill payment service providers, household goods providers, and producers/owners of daily needs products.

After becoming an investor in Trade, number of collaborations business is getting faster. Among them, the integration of the Trade API with the Warung Precise application, thus enabling Mitra Correct agents to purchase individual groceries at wholesale prices, whether for personal needs or for resale. It is claimed that there are now 606 Exact Partners in 66 cities that have taken advantage of this feature.

Next, develop payment alternatives with paylater for trading consumers, access to financing, and expanding opportunities for BTPN Syariah customers to become trading partners.

For the record, Mitra Right is a classification given by BTPS to financing customers who have succeeded in developing a larger business. Mitra Right is a housewife who owns a business and is an extension of the bank in serving customers.

In the consolidated financial statements of BTPN Syariah for 2022, BTPN Syariah Ventura has total assets of IDR 313 billion with total equity of IDR 311 billion. Then, the value of the investment stock (investment in shares) of IDR 81 billion and a net profit of IDR 4 billion (with fair value investment = initial cost).

The managerial structure at BTPN Syariah Ventura is also quite efficient because all of them come from the BTPN Syariah circle. The position of commissioner is filled by Fachmi and M. Gatot Adhi Prasetyo (Director of BTPN Syariah). Meanwhile, Main Director of BTPN Syariah Ventura Ade Fauzan also serves as Business Development Head at BTPN Syariah, together with Destya Danang Pradityo as Director at CVC.

Sharia digital ecosystem

Fachmi continued, apart from investing in Trade, last year the company recorded a series of innovations to realize development aspirations sharia digital ecosystem specifically for the pre/quite affluent segment.

First, financial access to productive working capital (access to finance) which can now be obtained by digital processing. This method has indirectly literate inclusive customers to slowly become digitally savvy. They also have an impact on their communities to make it easier to access banking services. Not only for financing customers, the company has also perfected the latest e-channel services for funding customers through Precise Mobile Banking and internet banking.

Second, expanding access to knowledge (access to knowledge) through a measurable and sustainable empowerment program Exactly Daya. This digital platform is integrated with empowerment programs to increase customer capacity while at the same time opening opportunities for the whole community to be actively involved in empowering customers.

The company's innovations above have a positive impact on financial performance. Among them, total assets amounted to IDR 21,2 trillion and financing reached IDR 11,5 trillion, growing 10% (YoY). This growth in financing is accompanied by the quality of financing which remains healthy as reflected in Non Performing Financing (NPF) under regulatory provisions and net profit after tax reached IDR 1,78 trillion, an increase of 21,9%.

Regarding the macroeconomic prospects this year, Fachmi is quite optimistic that the company can return to good performance. The reason is because the years leading up to the political party were profitable for the ultra-micro segment of society. Yesterday's pandemic hit this segment because of the imposition of restrictions on space for movement which affected their business.

"This segment will suffer if there are natural disasters and Covid because of the prohibition to interact. As long as the ban is lifted the recovery will be better. From our experience, in 2013-2015 the ultra-micro segment didn't have a significant impact on them because they lived selling basic goods. The political [year] was the best year for the ultra-micro segment," he concluded.