Bareksa, a mutual fund marketplace platform in Indonesia, is in advanced talks with a host of investors to close its Series B funding round over the next few weeks, a top executive said.
“Hopefully we will close the [Series B] funding after Eid celebrations in June or in July. Initially, there were several interested partners [to invest for Series B round] but currently, we are discussing with strategic investors, including one local investor and a foreign one,” Bareksa president director Karaniya Dharmasaputra told DEALSTREETASIA without disclosing how much the firm is seeking to raise.
Digital payment platform OVO recently invested over $20 million in Bareksa. Dharmasaputra declined to specify if the investment was a part of the Series B round or a strategic partnership.
In 2017, Bareksa had raised capital through a rights issue from Gemilang Dana Sentosa, a backer of e-payment provider Doku, in lieu of a 20 per cent stake.
With the Series B funding, Bareksa plans to launch a slew of investment and financial products this year. It also plans to partner with fintech startups and a unit of an Indonesian conglomerate to expand its investment product coverage.
In the third quarter of this year, the company plans to roll out its first corporate retail bond product in the country, in partnership with Federal International Finance (FIF), a financing unit of diversified conglomerate Astra International.
FIF Group has been raising about Rp 42 trillion ($2.9 billion) through corporate bonds sale since 2002. In the next few months, people will be able to purchase corporate bonds through Bareksa for an amount as little as Rp 500,000 ($34.9).
Corporate bonds market in Indonesia is dominated by institutional investors. FIF Group is looking to expand its operations as the company sees huge potential in the retail investor market wherein corporate participation is not that huge.
Going forward, Bareksa also plans to collaborate with wedding marketplace Bridestory to launch a financial savings product that could help young couples prepare their wedding budget. The plan is to roll out the product in the last quarter of this year.
Besides, the startup plans to launch a mutual fund product this month, targeting Indonesian Muslims who plan to go for Umrah. The company will partner with ride-hailing firm Grab for the same.
Bareksa targets to have 1 million customers by the end of this year from 510,000 currently. The company has Rp 1.1 trillion in assets under management (AUM) and gross transaction value at Rp 2.6 trillion ($37.1 million).