Digital Capital Raising - Indonesia

The country in Indonesia is expected to see the total transaction value in the Digital Capital Raising market market reach US$1.42bn in 2025.
MarketCrowdlending (Business) leads the market with a projected total transaction value of US$1.39bn in 2025.
When compared globally, the United States achieves the highest cumulated transaction value of US$37bn in 2025.
Indonesia is seeing a rise in digital capital raising platforms, revolutionizing the capital raising market with increased accessibility and efficiency.

Definition:

The Digital Caiptal Raising segment relates to digital financial services for business customers, and private borrowers. Included are Crowdinvesting models, which focus particularly on start-ups exchanging investment for company shares (equity-based), and Crowdfunding solutions, which are used for non-monetary compensation, for example product launches, music, art & film financing (reward-based). The market also includes bank-independent loan allocation for SMEs (Crowdlending) and for personal loans (Marketplace Lending or so-called Peer-to-Peer lending) through private or institutional investors via online platforms. In view of processing complexity, this market is focused on small and medium-sized enterprises (SMEs), freelancers and private persons. Bank financing is not considered, neither are any financial aspects that reach beyond the scope of small and medium-sized enterprises or donation-based Crowdfunding models.

Structure:

Digital Capital Raising consists of Reward-Based Crowdfunding, Crowdinvesting, Crowdlending and Marketplace Lending.

Additional Information:

The market comprises of transaction values, campaigns, average funding per campaign.

Alternative financing for SMEs and freelancers
Equity-based Crowdfunding (or Crowdinvesting)
Reward-based Crowdfunding (or Crowdfunding)
Alternative lending for SMEs and freelancers (bank-independent loans)
Online marketplaces for personal loan applications and private investors
Peer-to-Peer loans with interest rates depending on internal credit scoring of the platform provider

Traditional bank loans
Traditional venture capital investments by institutional or private investors

Digital Capital Raising: market data & analysis

The Digital Capital Raising Market in Indonesia is witnessing moderate growth, fueled by the increasing digitization of financial services, heightened investor interest, and a growing entrepreneurial ecosystem that embraces innovative funding solutions.

Customer preferences: Investors in Indonesia are increasingly gravitating towards digital platforms for capital raising, reflecting a broader trend of embracing technology in financial transactions. This shift is driven by a younger demographic that values convenience and accessibility, favoring online investment opportunities over traditional methods. Additionally, the rise of social media and fintech solutions has fostered a culture of peer-to-peer funding, encouraging collaboration among entrepreneurs and investors. As a result, innovative funding models, such as crowdfunding and equity crowdfunding, are gaining traction in the market.

Trends in the market: In Indonesia, the Digital Capital Raising Market is experiencing a surge in the adoption of online investment platforms, as more startups and small businesses seek alternative funding sources. This trend is particularly prominent among millennials and Gen Z, who prefer the speed and ease of digital transactions. Furthermore, the proliferation of fintech solutions is enabling diverse funding options, including equity crowdfunding and peer-to-peer lending. These developments not only democratize access to capital but also reshape investor engagement, compelling traditional financial institutions to adapt their strategies to remain competitive in this evolving landscape.

Local special circumstances: In Indonesia, the Digital Capital Raising Market is flourishing, driven by a youthful population increasingly comfortable with technology and online transactions. The archipelagic nature of the country encourages innovative fintech solutions to bridge geographical gaps, enabling access to funding for remote startups. Additionally, cultural factors such as community-driven investment practices resonate with peer-to-peer lending models. Regulatory support from the government, including the establishment of OJK guidelines for fintech, further enhances market credibility, attracting both local and foreign investors to this dynamic ecosystem.

Underlying macroeconomic factors: The Digital Capital Raising Market in Indonesia is significantly shaped by macroeconomic factors such as the rapid adoption of digital technologies, robust economic growth, and supportive fiscal policies. The nation's GDP growth, driven by a young, tech-savvy population, fuels entrepreneurial activity and enhances the demand for innovative funding solutions. Furthermore, the Indonesian government's commitment to fostering a digital economy through regulatory frameworks and incentives encourages investment in fintech. Global economic trends, including the rise of remote work and digital commerce, also play a crucial role in expanding access to capital for startups across the archipelago, making the market increasingly attractive to both domestic and international investors.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Finance market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.

Digital Capital Raising - Indonesia

Capital Raised

Average Deal Size

Global Comparison

Number of Deals

Analyst Opinion

Methodology

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