Indonesian e-commerce platform for modest fashion HIJUP today announced the launch of an IDR100 billion (US$6.9 million) fund.
Called HIJUP Growth Fund, it aims to invest around IDR2 billion (US$138,000) each in local modest fashion brands.
The fund offers three different schemes depending on the companies’ stages and needs:
- Implementation of outright sales scheme for earlier stage companies
- Provision of working capital under a Sharia-based business financing scheme for mid-stage companies
- Growth investment for later-stage companies.
In addition to funding, HIJUP Growth Fund will also provide mentorship for the fashion brands. The fund has already invested in Buttonscarves and Puru Kambera.
“The goal of this fund is not to dominate but to empower,” HIJUP CEO Diajeng Lestari said in a virtual press conference. “This is a solution to help [small businesses] survive and grow stronger … It is also a proof of our commitment to support modest fashion industry by becoming more than just a marketplace. We intend to become an ecosystem.”
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The CEO also stated that Hijup does not intend to fully acquire the companies/brands it backs.
Started in 2011, HIJUP was founded to seize opportunities in the modest fashion segment in Indonesia, which has the largest Muslim population in the world. As of now, it works with up to 300 brands through its online mall.
According to Sandiaga Uno, Minister of Tourism and Creative Economy, who was present at the press conference, fashion is the second-largest contributor to Indonesia’s creative economy sector. “This is strongly related to the industry’s ability to digitalise early on,” he explained.
There has been an ongoing trend of tech founders setting up funds to invest in fellow startups and/or small businesses in Southeast Asia.
This trend can also be seen in Indonesia.
In March, founders of online coffee shop chain Kopi Kenangan announced an angel fund to support local startups. Kenangan Fund is sector-agnostic and invests between US$10,000 and US$150,000 each. It has invested in logistics startup Dropezy, fintech platform Bukukas, podcast company Noice, and automotive firm Otoklix.
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