Indonesian e-commerce company Bukalapak has announced its full foray into the mutual funds space by launching a new fintech business unit, Buka Investasi Bersama (BIB) that will act as a mutual fund selling agent.
The move makes Bukalapak the first e-commerce marketplace to obtain a licence to sell mutual funds in Indonesia. Its peers currently team up with licensed fintech startups to offer mutual funds services.
Bukalapak said that BIB will aim to provide investment solutions that can be accessed by all groups, the company said in a release.
Bukalapak first ventured into the mutual fund space in 2016 when it partnered with fintech company Bareksa to roll out BukaReksa, an in-app feature that allows Bukalapak users to invest in mutual funds.
The company claims that BukaReksa has reached more than hundreds of thousands of first-time investors. Buka Investasi Bersama looks to further advance this business.
“BukaReksa was our starting platform to understand the best approach in presenting technology-based micro investment solutions. Along the way, there are several important aspects that become our priority to continue to innovate and expand access, namely independence, improvement in operations, security and regulatory oversight which are very important to increase investor satisfaction and comfort. This is what we are doing with BIB,” said Bukalapak AVP of Investment Solution and Financing Dhinda Arisyisya.
The decision to go solo with its mutual funds business through BIB was partly driven by new CEO Rachmat Kaimuddin, who along with company President Teddy Oetomo and AVP Dhinda Arisyisya, come with experience in the capital and financial markets.
In the company’s earlier expansion in the financial services sector, CEO Kaimuddin, who is a former banking director, says Bukalapak will aim to turn the mom-and-pop stores that use its B2B e-commerce platform into banking agents through a partnership with one of the country’s largest lenders.