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Mutual fund investment app Bibit raises $65m in latest funding round
Investment app Bibit has raised US$95 million so far this year thanks to an additional $65 million in investment coming largely from earlier investors. The company plans to use the fresh funds to increase investment education and awareness.
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utual fund investment app Bibit has raised US$65 million in funding to launch new products, develop its technology, acquire talent and expand financial literacy programs to benefit from the growing investment appetite of young Indonesians.
The company wrote in a statement on Monday that the latest funding came from Sequoia Capital India, AC Ventures, East Ventures, Prosus Ventures, Tencent and Harvard Management Company.
“Bibit is leveraging on technology to make investment accessible to everyone, including the inexperienced first-time investors. Therefore, we are seeing an accelerated interest from retail investors into the capital market,” said Bibit CEO Sigit Kouwagam in the statement.
Indonesia saw a rise in retail traders last year as large-scale social restrictions (PSBB) created an opportunity for young professionals to learn about and enter the stock market as many were working from home and had more time to trade.
Read also: The rise of the retail investor: A new force in Indonesia’s pandemic-hit stock market
According to Indonesia Stock Exchange (IDX) and Indonesian Central Securities Depository (KSEI) data, the number of mutual fund investors in the country grew 78 percent to 3.2 million individuals last year. More than 1 million new investors were registered in this year’s first quarter.
Despite the rapid growth, the number of capital market investors only represents around 2 percent of the population, which Bibit views as an indicator of the magnitude of Indonesia’s untapped market potential.
Bibit, which is a licensed Mutual Funds Selling Agent under the supervision of the Financial Services Authority (OJK), claimed to have “millions” of users to date, 90 percent of whom are millennials and first-time investors.
The latest investment brings Bibit’s total disclosed funding to date to US$95 million after the company received $30 million in funding in January, which also involved Sequoia Capital India, AC Ventures and East Ventures.
Read also: Investment app Bibit secures $30m in new funding
Stock trading platform Stockbit acquired Bibit in 2019 for an undisclosed amount and launched the current Bibit app that same year to diversify its business into mutual funds. Stockbit also received funding from Sequoia Capital India and East Ventures.
Sequoia India vice president Rohit Agarwal said the venture capital firm saw strong growth potential in Bibit as a gateway for young investors to begin investing in other financial instruments, particularly in stocks.
“Sequoia Capital India is excited to double down on the partnership, as the company brings the same customer focus to stock investing as Stockbit,” he said.
Meanwhile, Prosus Ventures Southeast Asia Investments head Sachin Bhanot said “the digital wealth management segment in Indonesia was at an inflection point, driven by the country’s millennial-led, mobile-first economy. We believe Bibit is uniquely positioned as Indonesia’s leading investing platform and will continue to drive financial inclusion across the country.”
