Add Value, Zahir Immediately Inaugurates Fintech Product Aggregator “Capital Hub”

SaaS company Zahir expressed optimism that the trend of migration to digital services by companies to support operational and business activities during the pandemic will continue. This momentum will be put to good use, one of which is the release of a product aggregator service fintech "Capital Hub" which is scheduled to air this year.

CEO Zahir International Muhamad Ismail said that this latest product was developed to meet the need for more efficient capital for all Zahir's target users of various business scales. According to him, this is the result of input from their own customers. "From here, Zahir concludes how to help companies to get capital faster and more efficiently," he said DailySocial.id.

Through this feature, Zahir will connect companies that are users with financial institutions up to fintech, according to their capital requirements. For example, in the micro segment, there are discussions with several institutions to provide affordable capital financing through waqf. Meanwhile, Zahir plays in three market segments, namely small, small-medium, and medium-corporate businesses.

So far, Capital Hub has collaborated with a number of Islamic financial institutions and fintech sharia. But Muhammad was reluctant to say further. He just said that currently Capital Hub is in the process of waiting for permission from the OJK. If nothing goes wrong, it will be inaugurated this year.

It was further explained, during the pandemic, Zahir's user growth reached 50%. The majority of them come from small-medium and medium-sized corporations. Based on the industry segment, most of them are in the market distribution business and trading, then manufacturing, contractors, educational institutions, and the beauty industry.

"Overall, Zahir's users have reached more than 100 thousand" user, consisting of various industry segments, the majority of the industry is trading & distribution, manufacturing such as medical devices, sports equipment, and production machine tools. Then, the contractor service industry, educational institutions, foundations and beauty. 70% of them are in Java and the rest are outside Java.”

Zahir plays in three market segments, namely small, small-medium, and medium-corporate businesses. However, revenue, the largest came from small-medium-sized and medium-corporations. Therefore, Zahir is more focused on these two segments. "Our expansion this year will take more seriously to market enterprise because we see the market for mobile devices to report the ERP is interesting and there are not so many players in Indonesia.”

He believes that Zahir has three points that become strengths to capture this segment. Starting from, affordable ERP investments, fast implementation due to modular products and ready to use, and the flexibility of customization that can adapt to the needs and selected business strategies. All three are at once the most sought after elements by users, in an internal survey conducted by the company.

He continued, Zahir has 25 years of solid experience in the field market small and medium-sized enterprises and are aware of additional opportunities to encourage revenue and corporate growth. Therefore, the strategy will be launched through the development of ZahirERP and the corporate segment.

There are differences in the characteristics of technology adoption between small-medium and medium-sized corporations. For small-medium levels, they tend to be easier to self-on-board on SaaS. Meanwhile, at the corporate level, it takes more time to tuning in because the onboarding process is not easy. No process yet sourcing long, requiring multiple layers of decision making.

SaaS Industri Industry

Related  SaaS industry, Muhammad saw that now was the initial momentum for SaaS companies to grow. The market share of SaaS players here is still very large, and the challenges for market acquisition are still relatively high. "This means that pursuing profitability will still be a challenge."

In terms of industry clusters and segments, the number of SaaS players in Indonesia is growing rapidly. However, for now, the cost of market acquisition is still relatively high because SaaS in Indonesia for market acquisition is not as easy as in developed countries. Therefore, need more Yago's defensive effort addition.

“So even though it grows in various segments, SaaS in Indonesia still has some homework to make sure it can generate profits because the economies of scale that must be pursued are quite large. But I believe investing in SaaS in the next two years will still be something that VCs in Indonesia are interested in.”

For Zahir himself, the need for external funding is still needed, especially in order to increase market penetration. Currently the company is conducting an analysis to select alternative sources of strategic funding for the company.

“We believe today, we are the most efficient SaaS in acquiring market with customer acquisition costs very attractive. And this funding helps Zahir to accelerate the acquisition of new customers.”

In an effort to encourage penetration of SaaS solutions, the company also established its own incubator program "Zahir Business Incubator". This program is prepared for business people who want to take a class in developing their business. There are solving five problems to solve, among them growing a business that has been around for years, but revenue stuck; want to grow a business by working with investors, but are confused about where to start, and so on.

Zahir Business Incubator is run in the form of one-on-one coaching with experts. The target participants are only limited to Zahir consumers.