Startup SCF Shafiq Records More Interest in Investors' Sukuk Funding

Startups crowdfunding fintech securities (SCF) Shafiq predicts that debt securities/sukuk (EBUS) funding will be more attractive in the future. This product is considered to offer more convenience from the investors' side because there is a period of time that the business will return to them.

“Investors feel more comfortable investing in instruments that have a maturity period. And another trend is that investors are also starting to be interested in investing in sharia instruments, seen in 2022 products through crowdfunding sharia is superior compared to conventional," said Co-founder and CEO Shafiq Kevin Syahrizal to DailySocial.id.

According to performance results until October 2022, it was recorded that the company had issued 48 sukuk offerings and one share offering. A total of 25 businesses have beenscreening methods company, while the total funds amounted to IDR 100 billion. This figure is in accordance with the target set at the beginning of the year.

As many as four of the 48 offers meet the standards of the Sustainable Development Goals (SDG). The only share offering on Shafiq also managed to meet SDG standards. The company also wants to make sure it can print more SDG standards in the future.

"We make the achievement of IDR 100 billion a driving force so that we can provide the best service for publishers and investors. Various inputs and suggestions will be "fuel" for Shafiq to continue to grow," he added.

For this achievement, Kevin is optimistic that the prospects for SCF in Indonesia will still be dominated by EBUS products. According to him, stock products can be excited again if the secondary market can be held more regularly, not just once every six months. If there are more number of licensed SCF operators, automatically the interest from investors to be able to invest in SCF will continue to increase.

Shafiq, which officially opened its operations in August last year, currently does not have a secondary market. Kevin said, currently the discussion is still in the general stage, considering that the secondary market will only open in the third quarter of 2023.

"The majority of Shafiq's product portfolio is sukuk, while currently there is only one stock. But what we can say is that the secondary market that will be created will certainly follow the same mechanism as the existing market on the stock exchange.”

Based on POJK rules 57, secondary market can be a place for stock exchange, investors can buy and sell their shares. Instead, it becomes a second chance for investors who previously did not have time to buy these shares on the primary market. The Secondary Market can only be conducted twice a year.

Dominated by young investors

Another interesting finding shared is the demographics of Shafiq's investors who come from the younger generation. It is estimated that there is a growing trend of the "hijrah" wave and want an Islamic investment platform that doesn't just make it a mere jargon, but actually implements sharia as the main factor in business, being the triggering factor behind it. Although not specified, it is claimed that Shafiq has thousands of investors who come from these circles.

"Shafiq answered these concerns and needs by presenting an alternative sharia investment platform in the form of the first sharia SCF that is licensed and supervised by OJK and DSN-MUI. This is at the same time a challenge for us to provide investment solutions that have credibility from both sides business and technology. "

To facilitate access to Shafiq, the company plans to release the Shafiq application. This is because as many as 95% of users access Shafiq through their smart devices. Meanwhile, his party is still developing PWA (Progressive Web App) which is planned to be used by the end of this year.

"The application plan will be developed and can be used no later than the second quarter of 2023. Shafiq wants to answer user requests by presenting applications that have user experience that is good and gives satisfaction so that the investment experience becomes extraordinary.”

His party is also committed to presenting the best publishers, through a strict due diligence process so that investors can feel the benefits of a more secure and trustworthy sharia investment. Publishers can run their projects without any sharia violations by funding through Shafiq.

Fundraising plans are also being planned. Kevin said that currently his party has started discussing with several potential strategic investors. The hope is that this agreement can be completed no later than the first quarter of 2023.

Based on OJK data, total funds are collected in services through crowdfunding as of 19 August 2022 it reached IDR 567,45 billion. The funds were utilized by 266 MSMEs with a total of 120.422 investors. If broken down, the funding consists of 238 conventional MSME share issuances, 4 sharia-based MSME stock issuances, 3 MSME bonds, and 57 MSME sukuk.

"From industry data, the total fundraising from the issuance of shares was almost Rp. 600 billion, while specifically for EBUS, the total was almost Rp. 100 billion. Far greater than last year's achievements. So if you look at this year's trend, it turns out that the issuance of sukuk is considered attractive by MSMEs, reflecting that many are interested in obtaining capital with sharia contracts," said Deputy Chairman of the Indonesian Crowdfunding Services Association (ALUDI) Heinrich Vincent as quoted from Bisnis.com.

Furthermore, the number of SCF organizers has reached 11 companies, up from last year's 7 companies. Compared to last year's achievements, the industry through crowdfunding has helped issue shares of 193 SMEs worth IDR 412 billion, bringing them together with 93.733 active investors.