Danadidik, a startup providing loan solutions for students in the form of peer to peer lending announced has received seed funding from Singapore-based investors, Garden Impact Investments Pte Ltd.
The amount of funding is not mentioned. The funding will be used by the Danadidik to scale up their operations, improve service quality, and invest in technology.
Dipo Satria, Co-founder and CEO of Danadidik explained that this investment makes them enthusiastic to help educational disadvantaged in Indonesia.
“With this investment, we are incredibly excited to be able to impact more underprivileged students’ lives. We’d like to invite more local corporations and family offices to get involve to support more students through Danadidik,” Satria said in a press statement.
Garden Impact is currently focusing on investing in Southeast Asia. Their focus is on startups that have an impact on social value, especially on job creation in the fields of agriculture, healthcare, basic infrastructure, clean energy, and education. Afterward, Garden Impact aims for SMEs that have social impact, with potential for growth and asset appreciation.
How They Works
A study by the USAID revealed that there are about 19.4 million Indonesian youths who are not able to attend higher education due to limited financial support.
Launched in March 2016, Danadidik offers a clearly segmented fund-raising service. They provide services to fund education raising for students. Danandidik becomes a connector between a student who needs fund for education with people who are willing to provide grants.
Educational funds that can be raised by Danadidik are vary, can be a loan or donation. For donations, the benefactors will not ask for a return. Instead, the money from the return of the donation will be screened for other student educational funds. Both types of funds are also made using the scheme of interest-free return or 0% interest.
And then, all interest income from the recipient of the funds, will be returned to the benefactors. Then, how did Danadidik generate their profit? Satria details Danadidik’s profit from transaction fee, which consists of several sources, including registration, arranging fee and service fee during installment payment.
With transaction fee scheme, hoped that Danadidik incentive will be in-line with the benefactors. That is, Danadidik will only get profit if the benefactors gets a return.
Danadidik recently been announced as one of the nine startups in the first batch of Plug and Play Indonesia acceleration program among with Astronaut, a mobile based selfie video platform to facilitate interviews; Brankas, financial management platform with features for sending and receiving payments, budgeting arrangements, and setting up multiple bank accounts in one application; Bustiket, a platform that allows users to place intercity bus ticket reservations; Karta, a provider of advertising services with motorcycles; KYCK, a platform that allows service providers to process Know Your Customer remotely or remotely; Otospector, a platform that offers used car inspection services with verified mechanics and a standardized assessment system; Vegetable Box, an e-commerce platform that allows users to purchase vegetables directly with farmers; Wonderworx, Outsource job portal for designers and engineers.