Bibit.id secures $65m funding to capitalise on Indonesian mutual fund growth
Indonesia-based robo-advisor start-up, Bibit.id, has raised $65 million in a funding round led by Sequoia Capital India. This follows a $30 million round just four months ago.
Bibit started in 2019 as a platform for investors to share trade ideas, news, and information in real-time. It now provides a digital investing app with a robo-advisory service that helps first-time investors invest in mutual fund products.
The start-up says the latest money will be used for new products, tech development, recruitment, and investment in financial education.
CEO, Sigit Kouwagam, says: “Previously, the stock market was seen as an intimidating place to invest. Bibit is leveraging on technology to make investment accessible to everyone, including the inexperienced first-time investors.”
The number of Indonesian mutual fund customers has grown almost tenfold in the last five years.
Data from IDX and Central Custodian shows a 78% growth in the number of mutual fund investors in Indonesia in 2020 to 3.2 million. The steep growth was primarily driven by millennials, who accounted for 92% of the new investors in 2020.
In the latest funding round, existing investors AC Ventures and East Ventures have been joined by Prosus Ventures, Tencent and Harvard Management Company.
Bibit does have digital competition in the mutual funds space, with Singapore-based StashAway also active in Indonesia.