Financial marketplace startup Bareksa is looking to raise its second round of funding and is currently in discussions with several local and global investors, including Chinese corporations, Bakreksa co-founder and chairman Karaniya Dharmasaputra told reporters in Jakarta.
The startup had recently raised an undisclosed sum from Gemilang Dana Sentosa, also an investor in e-payment provider DOKU, by offloading a 20 per cent stake. Bareksa had said it would use the fresh capital for business expansion, tech development, talent acquisition, and to boost marketing efforts.
“We are looking for strategic investors, not financial ones. What is important for us is getting that strategic added value, such as know-how and technology as this is a new game for all of us,” Dharmasaputra said.
Chinese tech giants, along with other global investors, are racing to capture the markets of Southeast Asia, a region that is home to more than 600 million people and is witnessing internet penetration grow at record pace. Indonesia, the region’s largest economy, is the prima donna for many of these firms.
The country is witnessing what players and market observers call the second wave of technology boom, as e-commerce sites and OTA platforms like Tokopedia, Traveloka, and Go-Jek joining the unicorn club (the first wave being the rise of online media portals led by Detik.com).
Internet penetration in Indonesia now stands at 50 per cent, opening doors for new startups to disrupt even more verticals. Riding on this momentum, Bareksa emerges as one of the first disruptors in the country’s long-dormant capital market.
Bareksa’s valuation has now reached an “eight-digit” figure in US dollars, according to media reports.
Launched in January 2015, Bareksa’s services range from financial data to online tool to news and analysis on investment and market. It sells about 128 mutual funds products – or about 20 per cent of the total products available in the industry – from about 30 financial companies. Soon, it will launch a platform selling bonds.
The Indonesian Financial Service Authority (OJK) has granted the startup a license to operate – the first for a fintech platform, it claimed.
The startup recently partnered with investment manager Schroders Indonesia that will sell seven of its mutual funds products on Bareksa’s platform. The local arm of the British asset management and private banking group Schroders manages about IDR 83 trillion in assets across the country.
Bareksa was launched in January 2015 and has till date recorded over 32,000 accounts with investments under management of more than Rp 200 billion. About 70 percent of its account holders are between the age group of 20 and 35 years old.
Currently, the gross transaction value at Bareksa stands at IDR 500 billion. It aims to double that number to IDR 1 trillion by the end of next year.