Heaptalk, Jakarta – Bibit, an Indonesian mutual fund investment start-up, announced it has successfully raised US$65 Million of fresh funding. This round series is led by Sequoia Capital India, a venture capital that also presided over the previous investment round with total funding of US$30 million. Prosus Ventures, Tencent, and Harvard Management Company, alongside its existing investors, AC Ventures and East Venture, also participated in the series.
After getting a vast investment at the beginning of the year, within four months, again, Bibit hit the news by earning US$65 million. According to Bibit, the usage of the new investment will be focused on launching its new products, developing technology, recruiting more human capital, and enhancing people’s awareness of investment.
The funding will be preposterous without the huge growth that was significantly demonstrated in Indonesia’s investment trajectory. Despite the total contribution of Indonesian in the capital market is less than 2%, IDX and KSEI recorded that Indonesian retail investors reached 3.2 million or grew 78% yoy in 2020.
The increase of investor’s appetite showed the country has a huge potential in the capital market. As a supporting fact, in the specific review, Rohit Agarwal, Vice President of Sequoia Capital India, stated that mutual funds in Indonesia had grown ten times since the last five years. Regarding the immense opportunity in the field, Bibit rolls out its business to provide facilities to people in accessing the capital market while enhancing awareness about the market potential.
“Previously, the capital market in Indonesia has a frightening specter in the investment industry, and become a field that limited for a certain class. Bibit has employed technology to facilitate every person to be easy in investing, including the beginner investor. Therefore, we view that there is a significant enhancement in retail investor interest in the capital market,” said Sigit Kouwagam, the Director of Bibit.
IDX and KSEI released that the total amount of mutual fund investors in Q1 2021 increased by around 1 million. Further, 92% of the escalation is donated by the millennial generation. This big amount was attained due to the major of internet users is dominated by millennial people that currently more open up about mutual funds.
Meanwhile, 90% of the new investors have no experience in the capital market, they are not familiar with the field. Bibit has previously seen the gap, then develops a mutual fund robo-advisor to assist the millennial generation in receiving a portfolio that fits their risk profile and investment goal. Considering to this feature, Bibit strives to reach its mission, namely to assist millions of consumers in starting their investment journey in the correct way.
Sigit added, ”We believe that Indonesian has a right to obtain a better future. Leverage financial inclusion and drive investment habit to the right path is one of our way to embodying our goal. We are proud to have support from our partner and investor to accelerate our mission.”
As a response, Rohit expressed,” Sequoia Capital India is excited to double down on the partnership as the company brings the same customer focus to stock investing with Stockbit.” (WLN)
