Indonesia-based online mutual fund platform Tanamduit has announced the closing of a $3 million seed funding round from local venture capital firm RND Capital.
The fresh funding will be used to develop new features on its platform, acquire talent particularly in the field of product development, digital marketing and relationship management, and also to finance its marketing strategy, Tanamduit said in a statement.
Developed and owned by fintech company PT Star Mercato Capitale, Tanamduit describes itself as a digital platform that assists users to plan, execute and monitor their mutual fund investments.
It provides self-learning facility for first-time investors in mutual funds to help them recognize their risk profile, and also recommend suitable products for users based on their characters and needs.
Tanamduit, which launched its platform earlier this year, says it has facilitated more than Rp 20 billion of investment for around 8,000 registered users so far.
According to Tanamduit Co-Founder and CEO Indra Suryawan, Indonesia has a lot of room to grow as far as mutual fund investments is concerned, particularly when compared to neighboring countries.
Only 0.25 per cent of Indonesians currently invests in mutual funds, which pales in comparison to Thailand’s 30% at the start of 2018 and Malaysia’s estimated 40 per cent.
“We still have many opportunities to expand market share and help the Indonesian economic movement, for this reason the funds must continue to expand. Increasing capital will help us realize that goal,” Suryawan said.
To expand its user base, Tanamduit has formed strategic collaborations with business like NU mobile and OJK Cooperatives, as well as tech startups like Talenta. It recently teamed up with lending startup Investree to roll out a mutual fund product on its peer-to-peer platform.
In Indonesia, Tanamduit competes with Bareksa and Invisee, which also provide a platform for mutual fund investment.
Bareksa raised its first funding last year through a rights issue purchase by Gemilang Dana Sentosa, a backer of e-payment provider Doku. DEALSTREETASIA reported earlier this year that it is expecting to close its second round of funding this year.