Udana Facilitates MSMEs to Get Funding from Crowdfunding

Alternative funding for MSMEs is now increasing with the presence of Udana. Startup crowdfunding securities (SCF) has ambitions to become the most trusted crowdfunding platform in Indonesia because it promotes full transparency of mitigation process to listing, so as to provide a sense of confidence for investors.

Married was founded by Eric Wicaksono and currently has a business license from the OJK with a legal entity PT Dana Rintis Indonesia. The company is said to have obtained equity funding with an undisclosed nominal and investors.

To DailySocial.idEric said that his ambition to start Udana was none other than the limited access to funding for MSMEs, which continues to be an issue. This condition has an impact on the difficulty of business owners when they want to develop their business to an advanced stage. Therefore, only a few MSMEs can advance to class. On the other hand, public investment interest is on the rise throughout the pandemic. The community is also actively looking for alternative instruments to earn passive income through investment channels.

“Udana is here for provide an alternative or a new way of investing that gives investors more choice and freedom. We are also present as a solution to increase MSME business growth by bringing together business people with innovative ideas with potential investors," he said.

Udana did not specify the types of MSMEs targeted by Udana. He only said that the differentiation offered by Udana compared to similar players was that it carried out a strict validation and curation process before an MSME was listed through its platform. Plus, the platform is open to business performance data that can be monitored by investors at any time, including when dividends are distributed from the results they will get.

Eric continued, Udana also gave benefits specifically given to MSME businessmen and investors. For business people, they will receive training related to their business and will continue to be monitored regularly in order to improve their business performance. Meanwhile, investors will get benefits, like membership and more that can be enjoyed from each of the businesses they fund.

“Udana wants to give a taste sense of belonging which allows investors to directly feel the growth of their invested business and of course there will be many other surprises if they become one of the investors in Udana.”

Curation process

In the business curation and valuation process, the company carries out all the steps strictly, as applied by a venture capital company, but with slight adjustments because the object being curated is MSMEs. This activity is carried out by Udana's team of business analysts who will conduct rigorous due diligence (in-depth due diligence) from the business, legal, and financial aspects of the business selection process.

After successful business listing, the team will monitor the development of their business and are ready to help businesses in the event of a decline in performance or need other assistance. "This aims to provide quality investment instruments and have the potential to be developed."

It is claimed that currently there are six publishers who are in the final stages of curation in Udana, the majority of which are engaged in the culinary industry. It is hoped that by the end of the second quarter all of these MSMEs can immediately hold a fundraising event. Meanwhile, for this year's target, aim for funding for 20 MSMEs worth Rp40 billion.

The crowdfunding industry, he continued, is still in its early stages in Indonesia, so this condition must be utilized properly by the ecosystem. Therefore, the company cooperates with the ecosystem to promote education to the public regarding the investment risks that can arise when placing their funds in crowdfunding instruments, their advantages and disadvantages. Moreover, this move is in line with Udana's ambition to position itself as the most trusted platform.

“It is hoped that investors have knowledge and know the risks before deciding to invest in crowdfunding. Udana has a positive goal, which is to build an ecosystem together through crowdfunding in Indonesia so that it can become one of the driving forces of the economy in Indonesia," he concluded.

Industrially, OJK noted that throughout 2021, there were seven platforms who obtained a business license. This number increased by 75% compared to the previous year, which only recorded four Operators. In the same period, the number of MSME publishers/actors who managed to raise funds through SCF also increased by 48,84% from the previous 129 companies to 192 companies in 2021.

From the investor side, SCF also experienced a significant increase, which was 319,56% from the previous 22.341 investors to 93.733 investors in 2021. The total funds raised also increased by 115,48% from Rp191,2 billion to Rp412 billion.