Chip-In: Sarana Investasi Urun Dana melalui Kepemilikan Bisnis di Indonesia

Indonesia’s SME holds a very important role in the country’s overall economic performance. However, about 70% of which are still considered unbanked and have limited access to financial support, skills and resources as well as technological literacy to adapt in the new market. Thus, these factors become the main constraints for SME to develop and grow. Understanding that Indonesia’s SMEs has huge potential to expand, financial technology is one solution to financial resources, along with collaborative development to nurture and expand their potentials. Chip-In analyzed the industry structure considering its competitors, suppliers and buyers using Porter’s 5 Forces framework. It was found that the fintech crowdfunding industry is experiencing a rapid growth with many players trying to be the market leader in the industry. With a significant market size and growth, it possessed a great opportunity for Chip-In to grow and thrive since ECF market leader has not been clearly defined. Industry analysis concludes that fintech crowdfunding investment industry is highly attractive with high potential in the future Chip-In generates its revenue by charging a 10% success fee from successful business funding from SMEs. While investors are charged with 5% management fee on the dividend or profit sharing stage. Although Chip-In is not the first Equity Crowdfunding platform in Indonesia, Chip-In tries to thrive in the industry by focusing on its differentiation compared to other competitors. Beside funding opportunities, Chip-In provides SMEs with an ecosystem to help them grow their businesses with educational materials, workshops, and access to a wide range of relevant networks. Chip-In’s integrated reporting system via dashboard serves as a bridge between SMEs and their investors. The dashboard is used for business reporting, updates, and as a communication platform between the two parties. With this, business owners and investors will have a sense of ownership towards the businesses they are investing in, to create a synergistic and conducive ecosystem in the platform. Chip-In was established in 2021, started with 5 co-founders along with 2 stage of seed investors with a total initial investment of IDR 17.5 Billion. Business projection indicates that Chip-In will generate its profit by the fourth year of running its business. 10 years Chip-In projection shows positive NPV of IDR 11.76 Billion and 36.02% IRR.