P2P lender Danamart officially pivots to crowdfunding

OJK’s headquarters in Jakarta / Photo credit: OJK

Dana Aguna Nusantara (Danamart) has received a license from Otoritas Jasa Keuangan (OJK), Indonesia’s financial regulator, to operate a securities crowdfunding service, marking a shift from its previous focus on peer-to-peer (P2P) lending.

In a statement, the fintech company said that with the latest permit, it can provide SMEs with business capital of up to 10 billion rupiah (US$677,700).

Danamart was established in 2018 as a P2P lender that targeted small businesses and was registered under OJK.

The company offered loans ranging from 100 million rupiah (US$6,800) to 2 billion rupiah (US$135,200) and aimed to disburse 100 billion rupiah (US$6.8 million) to 200 billion rupiah (US$13.5 million) by 2019.

In 2021, Danamart ceased its fintech lending registration due to its “inability to continue operational activities,” OJK reported.

Danamart said it is now a sustainability-driven crowdfunding platform, with debts as its financing instrument. The company also said it has raised seed funding but didn’t specify the amount.

To date, OJK has granted securities and equity crowdfunding licenses to at least 16 firms, including Danasaham and FundEx, according to the Indonesian Crowdfunding Association.

Currency converted from Indonesian rupiah to US dollar: US$1 = 14,755 rupiah.

See also: Indonesia’s OJK launches more stringent regulations for online lenders