Jakarta-based wealth-tech startup Pluang has raised an additional $35 million led by Australian venture capital Square Peg to close its latest funding round at a total of $55 million, according to a statement on Monday.
US-based investment firm SIG, UOB Venture Management, and existing investors, including Gojek’s investment arm Go-Ventures and Openspace Ventures, also participated in the latest round.
Pluang raised the earlier tranche of $20 million in March. As reported earlier this year, Pluang secured $20 million in a pre-Series B round led by its existing investor Openspace Ventures. Return backers, including Go-Ventures, also joined the round.
Pluang will use the additional funding to develop products and hire new talent to cater to its growing customer base.
Pluang, which was founded by Claudia Kolonas and Richard Chua, taps into the growing middle class in Southeast Asia’s biggest economy by offering retail investors an option to invest in gold, equity indices, mutual funds, and cryptocurrency for as low as $0.50.
In a country with very low financial literacy, Pluang places importance on educating its customers on investing and long-term wealth creation. Pluang has been selected to provide mini-apps within large ecosystems – including Gojek, Dana and Bukalapak, with several more in the pipeline, per the statement.
“We have been impressed with Claudia and Richard’s vision to democratise access to wealth creation opportunities for all Indonesians, and their sense of responsibility to improve financial literacy in Indonesia”, said Tushar Roy, Partner, Square Peg.
Since its rebranding from EmasDigi, Pluang has amassed nearly 3 million registered users.
According to the survey by Indonesia’s financial services authority in 2019, less than 40% of the 12,773 respondents have adequate knowledge, know-how, and confidence to make an informed financial decision. This number, however, has improved since 2013.
As reported by DealStreetAsia, Indonesia’s wealth tech startups have raised $356 million up to June this year, thanks to the support by a new generation of retail investors.