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Investment app Bibit secures $30m in new funding
The investment app saw a 10-fold growth in transactions last year, benefiting from the shift in consumer behavior to online technology and saving instead of spending money amid the COVID-19 emergency.
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A screenshot shows the Google Play Store page for Bibit, an investment app launched in 2019 by investment start-up Stockbit. (JP/-)
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nvestment app Bibit plans to use the US$30 million it has raised in a new funding round to expand its services to enable more people to invest in the capital market amid recent growth spurred by the pandemic.
Sequoia Capital India joined the Indonesian app’s existing investors, including East Ventures, EV Growth, AC Ventures and global early-stage venture fund 500 Startups, in participating in the latest funding round.
Bibit CEO Sigit Kouwagam said the company had experienced significant growth with more than 1 million first-time investors registering with the app in the past year alone.
“We believe that all Indonesians deserve a better future. Enabling people to participate in the capital market and helping them make the right investment is the way to achieve that,” Sigit said in a statement on Tuesday.
He added that the app’s growth in new investors could be attributed to increased investment awareness and education on the importance of having good personal financial management.
The public health crisis has helped spur growth in the number of Indonesians investing their money in financial products, including equities.
According to the data at the Indonesia Stock Exchange (IDX) and the Indonesian Central Securities Depository (KSEI), 3.87 million single investor identifications (SIDs) had been issued as of Dec. 29, a 55.83 percent year-on-year increase from total SIDs at end of 2019.
KSEI data also showed that the majority of new investors were from the under 30 and 30-40 years age groups.
“This is the year for retail investors,” IDX president director Inarno Djajadi said on Dec. 30.
Read also: Indonesian stocks conclude ‘year of retail investor’ on bearish note
Investment platform Stockbit launched the Bibit app in 2019 with an aim to make investing seamless, even for first-time investors. Millennials and first-time investors currently comprised 90 percent of Bibit users, the company stated.
Sigit said that the app’s Robo Advisor feature, which helps investors build portfolios according to their risk profile and investment goals, simplified investing to suit new investors’ needs.
“Consumers across the world are moving their savings from low-yield assets like gold [and] real estate to financial products with higher yields. We are excited about Bibit’s potential to help every Indonesian achieve their financial goals,” said Sequoia India vice president Rohit Agarwal.
Meanwhile, East Ventures cofounder and managing partner Willson Cuaca said Stockbit and Bibit had been positively impacted by the pandemic. The company had seen rapid growth in users investing in retail, recording more than 10 times growth in transactions last year.
“This new [funding] round will push Stockbit to grow further and cement its position as the leading [investment] platform in Indonesia,” he added. (eyc)
