Four months after main a $30 million growth round in Bibit, Sequoia Capital India has doubled down on its funding within the Indonesian robo-advisor app. Bibit introduced as we speak that the agency led a brand new $65 million development spherical that additionally included participation from Prosus Ventures, Tencent, Harvard Management Company and returning buyers AC Ventures and East Ventures.
This brings Bibit’s complete funding to $110 million, together with a Series A introduced in May 2019. Its newest spherical shall be used on growing and launching new merchandise, hiring and rising Bibit’s monetary training companies.
Bibit was launched in 2019 by Stockbit, a inventory investing platform and group, and is a part of a crop of Indonesian funding apps targeted on new buyers. Others embrace SoftBank Ventures-backed Ajaib, Bareksa, Pluang and FUNDtastic. Bibit runs robo-advisor companies for mutual funds, investing customers’ cash based mostly on their danger profiles, and claims that 90% of its customers are millennials and first-time buyers.
According to Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan), the variety of retail buyers grew 56% year-over-year in 2020. For mutual funds specifically, Bibit stated buyers grew 78% year-over-year to three.2 million, based mostly on information from the Indonesia Stock Exchange and Central Securities Custodian.
Despite the financial influence of COVID-19, curiosity in inventory investing grew as folks took benefit of market dips (the Jakara Composite Index fell within the first quarter of 2020, however is now recovering steadily). Apps like Bibit and its opponents need to make capital investing extra accessible with decrease charges and minimal funding quantities than conventional brokerages like Mandiri Sekuritas, which also saw an increase in new retail buyers and common transaction worth final 12 months.
But the percentage of retail investors in Indonesia is still very low, particularly in comparison with markets like Singapore or Malaysia, presenting development alternatives for funding companies.
Apps like Bibit deal with content material that helps make capital investing much less intimidating to first-time buyers. For instance, Ajaib additionally presents its monetary instructional options as a promoting level.
In press assertion, Sequoia Capital India vp Rohit Agarwal stated, “Indonesian mutual fund customers have grown almost 10x in the past five years. Savings via mutual funds is the first step towards investing and Bibit has helped millions of consumers start their investing journey in a responsible manner. Sequoia Capital India is excited to double down on the partnership as the company brings the same customer focus to stock investing with Stockbit.”