OCBC Ventura Encourages Distribution of "Venture Debt", Focusing on Health and Retail Areas
OCBC Ventura is finalizing deals with 2-3 new portfolios by the end of 2023
OCBC NISP Ventura (ONV) continues its investment strategy beyond banking by introducing Vilo as its newest portfolio. Vilo is an Indonesian gelato company in the segment consumer retail, who receive funding with an undisclosed amount in the form of debt (venture debt).
Contacted DailySocial.id Separately, OCBC Ventura President Director Darryl Ratulangi revealed that the company is in the process of completing funding agreements for 2-3 new portfolios by the end of 2023.
"In 2023, we are indeed developing venture debt with a focus on the area consumer retail--including F&B--and healthcare. We see there are opportunities where the sector still exists underbanked, but [this sector] is not very suitable for investment schemes venture capital," said Darryl.
Since operating in 2020, OCBC Ventura has disbursed funding to 15 other startups in various verticals, including agritech (Eden Farm), e-commerce enablers (Circlo), fintech (CashCloud, GajiGesa), online media (IDN Media, USS Networks), and proptech (99 Group, Dekoruma, Rukita).
He added, OCBC Ventura has different metrics to measure portfolio synergies from the various sectors it enters. He believes there is no single metric that can be applied to the entire portfolio, but the company continues to encourage partnerships to create products and solutions for customers.
A glance at Vilo, this gelato company was founded by Vincent Kusuma, Christian Susilo, and Tomi Lunardi in 2017. This funding will be used to encourage expansion o nationally to accelerate product innovation by producing a series of new gelato flavors.
Vilo already produces more than 21 tons of gelato per month and operates more than 20 o in big cities such as Jakarta, Bandung, Surabaya and Bali. They want to present local gelato that can compete with international brands.
"Our collaboration with OCBC Ventura is an important milestone in our journey and this financial partnership will strengthen our position in the gelato market. We hope to provide greater value to our customers and partners," said Vilo CEO Vincent Kusuma in his official statement.
Scheme venture debt is a new financial instrument introduced by OCBC Ventura so that startups can optimize capital and accelerate business growth.
The scheme is now widely used by banks and venture capitalists in Indonesia. For founder, venture debt is considered to have a lower risk and is more comfortable to take because it does not reduce the share ownership portion of the company. Founder can still control the company.
Banks CIMB Niaga and Genesis Alternative Ventures is one of them that has venture debt specifically for financing startups in the fields of fashion, retail, F&B, health, and manufacturing.
Potency healthtech and consumer retail
Sector healthtech and consumer retail has become a sector that has received quite a lot of attention from venture capitalists over the last few years. The Covid-19 pandemic is a significant factor that has contributed to changes in consumer behavior in consuming health services and goods.
Report DS/X Ventures uncover the value of the industry healthcare in Indonesia is projected to reach $68 billion in 2030. From data collected over the last ten years, the total funding flowing to startups healthtech in Indonesia amounted to $231,7 million.
Meanwhile, the emergence of startups consumer retail utilize approach direct-to-consumer (D2C) to introduce the product. Ecosystem marketplaces, payments, to logistics allow D2C players to reach consumers directly by cutting a number of distribution chains.