The Jakarta Post
Halofina, a digital financial advisory and wealth management platform, has clinched Pre-series A funding from Mandiri Capital Indonesia and European venture capital firm Finch Capital.
Halofina chief executive officer and cofounder Adjie Wicaksana said on Friday that the platform would use the funds raised to develop its online financial services platform.
“We will mainly use the funds raised in this series for product development, talent acquisition and strengthening strategic partnerships,” he said during a press briefing in Jakarta, adding that the investment from Mandiri Capital would give the platform early access to Mandiri group’s investment products.
Halofina not only helps users manage their personal finance based on their goals but also lets them receive investment strategy recommendations from artificial intelligence (AI) and allows them to invest directly from the mobile app. The platform has partnered with mutual fund marketplace Tanamduit, gold marketplaces Indogold and Tamasia and peer-to-peer lending danaIN and Mekar.
Mandiri Capital CEO Eddi Danusaputro said the investment in Halofina was strategic as it could help the Mandiri group market its products and presence among millennials and help the group better connect with its wealth management clients.
Eddi also said that the firm, along with Finch Capital, had invested from US$1 million to $5 million in the platform. He and Finch Capital investment manager Irmansyah Putera declined to state the specific amount.
Irmansyah said his firm saw a big opportunity to increase Indonesians’ financial literacy through participating in Halofina's Pre-series A round of funding.
According to the 2018 Financial Inclusion Insights Survey, the results of which were published by the National Committee for Financial Inclusion (DNKI) earlier this month, Indonesia's financial inclusion rate was 55.7 percent, meaning 55.7 percent of the respondents had formal financial accounts with banks, fintech companies or cooperatives last year.
That figure marks a jump in financial inclusion from 35.1 percent in 2016 and moves the country closer to President Joko “Jokowi” Widodo’s target of 75 percent financial inclusion by the end of this year.
“There needs to be a quantum leap in increasing the financial literacy rate in Indonesia, and we believe financial planning technology can contribute to that,” Irmansyah said.
After the Pre-series A funding, Helofina will start its Series A round at the end of the second quarter of 2020. In the meantime, Halofina plans to increase its user base from the current 15,000 users to 500,000 users over the next year, develop a premium subscription program for its users and provide them better financial advice.