Startup "Micro Finance Enabler" Djoin Gets Pre-Initial Funding

Startups microfinance enablerDjoin obtain pre-primary funding (pre seed) of $1 million or about 14,5 billion Rupiah from angel investors whose name is withheld (undisclosed). This funding will be used to strengthen the microfinance ecosystem and expand the market in Indonesia.

Djoin is a startup from Bali that provides a decentralized SaaS platform for the cooperative segment. Established in 2020, Djoin has a mission to deliver holistic microfinance solutions starting from applications, HR training, strengthening risk management, and improving brand for microfinance institutions, especially savings and loan cooperatives.

Founder Djoin I Wayan Indra Adhi Suputra said he would expand the scope of its services throughout Indonesia. He is aiming for a target of collaborating with 1.000 microfinance institutions, especially savings and loan cooperatives, until 2025.

Currently, Djoin claims to have partnered with dozens of cooperatives with total assets reaching IDR 1 trillion in Bali, NTB, and NTT. It also synergizes with the local government to educate microfinance institutions, especially cooperatives.

"We have a vision to make a social impact by developing microfinance institutions, especially modern cooperatives, which will become the driving force behind the growth of MSMEs in Indonesia."

Djoin offers two digital services, namely (1) Djoin Digital Cooperatives for savings and loan services and the sale of goods/services, and (2) Djoin Digital Village Credit Institutions (LPD). It should be noted, the mobile application is white label so use the name of the cooperative instead of brand Djoin. Meanwhile, the application has been launched since 2020.

Previously existed Kodi, a similar service that also wants to help cooperatives in the area digitize services and provide value-added to its members through technology-based features.

Cooperative transformation

Quoting Dataword, the Central Statistics Agency (BPS) noted that the number of cooperatives in Indonesia in 2020 reached 127.124 units with the majority located in East Java (17,6%), West Java (11,5%), and Central Java (9,5%).

Its contribution to GDP only reached 5% in that period. Meanwhile, the Ministry of Cooperatives and SMEs (KemenkopUKM) targets the contribution of the cooperative sector to touch 5,5% of the national GDP in 2024.

In his statement Last year, the Secretary of KemenkopUKM Arif Rahman Hakim said that national cooperatives were faced with the challenge of changing the way of doing business by utilizing technology and product innovation.

To deal with rapid technological developments, he assessed that cooperatives and SMEs need to digitize in order to achieve efficiency and effectiveness of cooperative services without changing the basic values.

"Cooperative modernization is an effort to change or digitally transform cooperatives to be more advanced in terms of organization, governance with technology, and can keep up with the times," he said.