BRI Ventures to Launch a New Fund "Sembrani Kiqani", Targeting D2C Sector

After launching the Sembrani Nusantara Venture Fund last year which focuses on early-stage startups funding, BRI Ventures (BVI) is to launch another investment vehicle named "Sembrani Kiqani".It is still targeting the early-stage startups, but rather focuses on consumer brands targeting the direct-to-consumer (D2C) sector.

BVI's CEO, Nicko Widjaja, in his opening remarks at the BRI Ventures Networking Day (23/11) mentioned the potential of the D2C sector growth in Indonesia for the fashion, F&B, and beauty segment. He said, this sector is capable to drive the current industry, especially amidst the economic recovery from the Covid-19 pandemic.

Marcel Lukman, owner of one of the well-known retail groups 707company, also one of the Partners at Sembrani Kiqani said that apart from D2C, this managed fund is also targeting the blockchain industry and its derivatives related to cryptocurrencies. BVI alone is planning to strengthen its investment to develop the crypto ecosystem in the country.

Previously, through Sembrani Nusantara, BVI has invested in the beverage brand developer Haus!, which is also its first non fintech portfolio. They disbursed around 30 billion Rupiah in the debut fund for startup. In addition, the local shoe product developer Brodo also received funding through its series A round.

Indonesian D2C industry

Retail is one of the industries that highly contributes to the national economy. However, the Covid-19 pandemic that shaken this industry's resilience had caused many businesses to change strategies or even give up on the situation. The one strategy being used is currently to directly target the consumers or direct-to-consumer (D2C).

According to data compiled in the "Driving Growth with D2C" report by Ogilvy, Commercetolls, and Verticurl, it is considered a must for brand owners to have a D2C digital strategy to win the market. The main goal is to build a more personal relationship with customers, thereby creating a more effective and engaging brand experience as a value proposition. D2C provides invaluable ownership of customer data.

In Indonesia alone, there are already several startups have adopted the D2C concept, including Brodo and Saturdays (fashion), Kopi Kenangan, Fore Coffee, Lemonilo (F&B), Dropezy (grocery), as well as the retail group startup Hypefast which focuses more on being a venture builder. VCs such as East Ventures are also targeting this sector, proven by its two newest portfolios, mohjo and Kasual.

Blockchain invesment

In early 2010, perhaps not many people understood the concept of blockchain and its utility in the technology industry. Today, discussions regarding crypto assets that run on blockchain platforms are heard everywhere both in the real world and on social media. However, the crypto ecosystem in Indonesia is quite premature and still requires in-depth education.

In an effort to develop the crypto ecosystem in Indonesia, BRI Ventures in collaboration with Tokocrypto, is planning a new initiative called the Tokocrypto Sembrani Blockchain Accelerator (TSBA). The first blockchain project is targeted to be launched in 2022.

In addition to crypto assets, a product that is currently captured the market, especially among tech enthusiasts, is NFT. As one of the unique digital assets, all types of media can be printed or tokenized and converted into NFT. This product has been available in various industries from digital art, virtual real estate, also collectibles, games, and many more.

The NFT hype encourages people to try this platform as an alternative investment commodity, supported by the presence of secondary markets on various popular marketplace platforms. Nonetheless, NFT is still a very new market, therefore, being prudent is mandatory.

There are several NFT marketplace platforms available in Indonesia, including TokoMall, Kolektibel, and Paras Digital.

–Original article is in Indonesian, translated by Kristin Siagian