Indonesia’s trader platform Stockbit acquires mutual fund app Bibit

IDX
An electronic ticker board displays stock prices inside the Indonesia Stock Exchange (IDX) in Jakarta, Indonesia, on Thursday, Dec. 17, 2015. Photographer: Dimas Ardian/Bloomberg

Indonesia-based Stockbit, a social network for stock traders, has acquired local investment startup Bibit for an undisclosed fee to simplify investment process for first-time traders.

Prior to the acquisition, which took place late last year, Bibit was an OJK-licensed tech-based mutual fund seller. Following the deal, Stockbit has relaunched Bibit as a robo-advisory platform to simplify conventional time-tested investment products to the Indonesian public.

“(Bibit will be) a one-click solution to invest in an optimal portfolio that is personalized towards your age and risk profile,” Stockbit CEO Wellson Lo told DEALSTREETASIA.

The move will be complementary to Stockbit’s business as community platform that enables traders to share ideas, news and other financial information in real time.

Lo said, the move was prompted by Stockbit’s interest in Bibit’s expertise in the field of mutual funds, the investment instrument of choice for first-time traders.

“The thinking behind it is very simple. We have learnt from our experience running Stockbit that Indonesians are generally new to investing. Many of them are first-time investors and simple question like how do they start investing is often asked.,” he said. “We believe that Reksadana is a sweet spot as an investment instrument for Indonesians to start investing because its diversified and managed by professionals.”

After the acquisition, Bibit will continue to run as a subsidiary of Stockbit and Bibit technology will be integrated within Stockbit as another distribution channel of its product.

Stockbit is backed by 500 Startups after raising an undisclosed pre-Series A funding from the Singapore-based VC in 2017 in a round also participated by previous backers Ideosource and Braavos Ventures.

The company monetizes through a freemium subscription model. The startup’s premium features are comparable to those of a Bloomberg Terminal, but at a fraction of the cost, it had claimed.

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