Indonesian robo-advisor app Bibit.id has raised $65 million in a fresh funding round led by Sequoia Capital India, DealStreetAsia has learnt.
The round was joined by Prosus Ventures, Tencent and Harvard Management Company as well as existing investors AC Ventures and East Ventures.
When contacted, the Indonesian company confirmed the development.
Bibit.id was launched in 2019 as a platform for investors to share trade ideas, news, and information. In its current avatar as a digital investment platform, it offers a robo-advisory service that helps first-time investors invest in mutual funds and build portfolios suited to their risk profiles and investment goals.
Bibit is owned by Stockbit, a stock investing platform for millennials in Indonesia. The investment platform plans to use the proceeds from its latest round for launching new products, tech development, acquiring talent, and improving financial education and awareness among its target audience.
According to IDX and Central Custodian data, the number of mutual fund investors in Indonesia grew 78% year-on-year to 3.2 million in 2020. This growth was contributed primarily by millennials who accounted for 92% of new investors last year.
The first quarter of 2021 alone saw the addition of more than 1 million new mutual fund investors. Despite this rapid growth, less than 2% of Indonesians have participated in the capital markets so far.
“Previously, the stock market was seen as an intimidating place to invest. Bibit is leveraging technology to make investments accessible to everyone, including the inexperienced first-time investors. Therefore, we are seeing an accelerated interest from retail investors into the capital market,” said Bibit.id CEO Sigit Kouwagam.
“Indonesian mutual fund customers have grown almost 10x in the past 5 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,” said Sequoia India VP Rohit Agarwal.
Bibit had in January raised $30 million from Sequoia Capital India, with backing from existing investors such as East Ventures, EV Growth, AC Ventures, and 500 Startups.
Sequoia’s other Southeast Asia investments include Gojek, Tokopedia, Zilingo. Kopi Kenangan, Carousell and Funding Societies.
Prosus Ventures, formerly known as Naspers Ventures, had earlier roped in former B Capital principal Sachin Bhanot to lead its investment efforts in Southeast Asia. The venture capital firm has previously invested in Indonesia’s Shipper.
“The digital wealth management segment in Indonesia is at an inflection point, driven by the country’s millennial-led, mobile-first economy,” said Bhanot. “We believe [Bibit] is uniquely positioned as Indonesia’s leading investing platform and will continue to drive financial inclusion across the country.”