Indonesian wealth management platform FUNDtastic has raised $7.7 million in its Series A round, per an announcement.
The investment was led by Singapore-based private equity firm Ascend Capital Group with participation from Indonesian tech investor Indivara Group, among others.
According to FUNDtastic co-founder and CEO Harry Hartono, the corpus raised will go towards improving the company’s products to make them more accessible to retail investors.
“The new fund aims to expand our market scope, and also develop more products and features,” Hartono said in a media statement. FUNDtastic’s growth will be driven by increasing mobile penetration in Indonesia, he added.
FUNDtastic, established in 2019 by Hartono, Franky Chandra, and Medwin Susilo, currently offers mutual funds and gold investment options. Going forward, it aims to offer retail bonds, insurance, and P2P lending.
In 2020, FUNDtastic acquired Indonesian investment platform Invisee, which allowed it to expand its product offerings and customer base. The number of users grew nearly fourfold after the deal. Last year, the platform said the number of users grew fivefold from 2019 to 110,000 users. Total managed funds on the platform amounted to Rp 200 billion ($14.2 million)
“Despite the pandemic having hit the Indonesian economy, awareness on investment and emergency funds was getting higher,” Hartono said.
According to the Indonesian stock exchange (IDX), the total number of investors on the stock market stood at 3.53 million investors in November 2020, of which 57.5 per cent invested in mutual funds.
“FUNDtastic can reach the underbanked and unbanked population to actively become investors. This progressive step can expand the new investors in doing a simple investment,” Ascend Capital partner Muljadi Tjandra said in a statement.