Building a Sustainable Startup Through IPO
Updated: Nov 14, 2020
On Wednesday (11/11), Indonesia Stock Exchange in collaboration with BRI Danareksa Sekuritas and BRI Ventures organized a virtual workshop on how to build a sustainable startup through Initial Public Offering (IPO). The workshop is aimed to raise awareness for startups and small-medium enterprises on the benefits of becoming a public company as well as the steps needed to do it.
Along with other speakers such as the director of BRI Danareksa Sekuritas and CEO and CIO of BRI Ventures, Ayoconnect’s Chief Financial Officer Alex Jatra was invited to share his expertise and experience, which spanned from being a part of a US-based global investment firm to being a CFO to a data analytics and agritech startup.
Alex began his session by briefly explaining how Ayoconnect has continued to thrive in this tumultuous year. In the last quarter alone, Ayoconnect has processed 9.2 million successful transactions.
“We’re glad that our services are resilient to COVID-19 impact, as they offer a much-needed solution in the billing industry especially when most of the transactions are digitized during the pandemic,” he explained.
“Bill payment is the first touchpoint of financial services”, he continued, “We forecasted a $170 billion opportunity, which accounts to 15% of Indonesia GDP, in the bill-tech industry. It is expected that those transactions will reach $200 billion in 2025."
“We forecasted a $170 billion opportunity, which accounts to 15% of Indonesia GDP, in the bill-tech industry. It is expected that those transactions will reach $200 billion in 2025." Alexander Jatra, CFO Ayoconnect
Ayoconnect CFO Alex Jatra shared his expertise in IDX virtual workshop
Ayoconnect’s strong business model has attracted investments from notable venture capital firms, including BRI Ventures. However, raising funds from VC firms is not the only available option for startups or other small-medium enterprises alike to acquire capital.
“Before deciding on whether to seek investment from venture capital firms or to go public, each company must first reflect on what they are trying to accomplish,” said Alex.
Alex continued, "Each option has its own pros and cons. Having a strong vision on what to aim for and where to go is crucial in making such decisions."
Alex listed four points of what should be considered. First, the company has to make sure that they have adopted a robust good corporate governance. Second, the company must carefully weigh all possible options, such as merger and acquisition or joint ventures. Third, the company must be able to create a positive public image to gain the trust and loyalty of prospective investors.
“And finally, whether it is pitching to VC, aiming for an IPO, or executing both options, you have to make sure that the whole team is committed”, he concluded.