Bibit, an Indonesian digital investment app, has announced the raising of $30 million from Sequoia Capital India, with backing from existing investors such as East Ventures, EV Growth, AC Ventures, and 500 Startups.
DealStreetAsia first broke the funding story on Tuesday morning and the official announcement from Bibit confirms the report.
Bibit is a digital investing app with a robo-advisory service that helps first-time investors start investing free of commission. It is now part of Stockbit, a stock investing app for millennials in Indonesia. The startup said 90 per cent of its users are millennials and first-time investors who are offered to build portfolios according to their risk profile and investment goals.
Bibit CEO Sigit Kouwagam said the startup has experienced significant growth since its launch in 2019, with more than 1 million first-time investors registering with the platform during the past year alone.
Kouwagam attributed this rise to the increase in awareness and education on investment and the importance of having good personal financial management.
East Ventures co-founder and managing partner Willson Cuaca said Stockbit and Bibit have been positively impacted during the pandemic, registering more than 10x growth in transactions in 2020.
“This new round will push Stockbit to grow further and cement their position as the leading platform in Indonesia,” Cuaca added.
Stockbit, which started out as a community platform that enables traders to share ideas, news, and other financial information in real-time, forayed into robo-advisory and wealth management in early 2019 when it acquired investment startup Bibit.
Following the deal, Stockbit relaunched Bibit as a robo-advisory platform to simplify conventional investment products to the Indonesian public.
Latest data from IDX and Central Custodian showed that the number of retail investors in Indonesia grew 56 per cent year-on-year in 2020. This growth was contributed mainly by the millennials, who accounted for 92 per cent of new investors last year.
Bibit, however, said that despite this rapid growth, only less than 2 per cent of Indonesians have participated in the stock market so far.
Sequoia Capital India, the lead investor in the funding round, operates in Southeast Asia and India, where it actively partners with founders from a wide range of companies and categories, including BYJUs, Carousell, Druva, Gojek, OYO Rooms, Tokopedia, Truecaller, Zilingo, and Zomato.