Udana Facilitates MSMEs to Get Funding from Crowdfunding
Alternative funding for MSMEs is now increasing with the presence of Udana. This securities crowdfunding (SCF) startup has the ambition to become the most trusted crowdfunding platform in Indonesia because it carries full transparency from the mitigation process to listing, so as to provide a sense of trust for investors.
Udana was founded by Eric Wicaksono and currently has a business license from the OJK with the legal entity PT Dana Rintis Indonesia. The company is said to have obtained equity funding with an undisclosed nominal and investors.
Eric said that his ambition to start Udana was due to limited access to funding for MSMEs, which continues to be an issue. These conditions have 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 increasing throughout the pandemic. The community is also actively looking for alternative instruments to earn passive income through investment channels.
“Udana is here to provide an alternative or 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 provided special benefits for MSME businesses 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, such as membership and others that can be enjoyed from each business they fund.
“Udana wants to give a sense of belonging that allows investors to directly feel the growth of the business being invested and of course there will be many other surprises if they become one of the investors in Udana.”
In the business curation and valuation process, the company carries out all the stages strictly, as applied by venture capital companies, but with minor adjustments because the object being curated is MSMEs.
This activity is carried out by a team of Udana business analysts who will conduct in-depth due diligence from business, legal, and financial aspects in the business selection process.
After the business is successfully listed, the team will monitor the development of its business and be ready to assist the business 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 at Udana, the majority of whom are engaged in the culinary industry. It is hoped that by the end of the second quarter all these MSMEs will be able to immediately hold a fundraising event.
Funding Targets for MSMEs
Meanwhile, for this year’s target, aim for funding for 20 MSMEs worth IDR 40 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. The hope is that investors have knowledge and know the risks before deciding to invest in crowdfunding.