Indonesian online stock brokerage platform Ajaib Group has raised an additional investment of $65 million for its Series A round led by Silicon Valley fintech investor Ribbit Capital.
In January this year, Ajaib had raised $25 million in its Series A round led by Li Ka-Shing’s Horizons Ventures, and Alpha JWC, and joined by return backers SoftBank Ventures Asia, Insignia Ventures, and Y Combinator.
With the latest tranche, Ajaib’s total Series A fundraising has touched $90 million in what is possibly the largest round at that stage in SE Asia. The deal also marks prolific fintech investor Ribbit’s debut investment in Southeast Asia.
Ribbit Capital, known for early investments in fintech unicorns Coinbase, Affirm, and Revolut, also led the stock-trading app Robinhood’s $3.4-billion mega financing last month.
Ajaib’s latest Series A round was also joined by ICONIQ Capital, Bangkok Bank PLC, and several notable fintech founders including Nubank’s David Velez and Toss’s SG Lee.
Ribbit Capital managing partner Micky Malka said, in the statement, “the market has witnessed an unprecedented revolution in retail investing around the world. Ajaib is at the forefront of the revolution and on their way to building the most trusted brand in the market.”
Ajaib Group claims to be the fourth-largest stock brokerage in Indonesia by the number of trades. In the last four months, it has processed over 10 million transactions. According to the statement, the platform provides a five-minute account opening process, zero minimum deposit, affordable prices, and free access to advanced analysis.
The startup will deploy the funding proceeds to continue investing in product development and engineering capabilities.
Ajaib Group CEO Anderson Sumarli said, “we believe in the power of Indonesia’s millennial retail investors. The majority of our growth is organic and we will continue to invest in our product and education programmes.”
In February, Ajaib announced a partnership with the Indonesian Stock Exchange to educate young Indonesians on the importance of investing and financial planning from an early age. The partnership focuses on conducting educational programmes in regions with have low financial literacy.
Founded in 2019, Ajaib already has over 1 million users. It provides stock trading and mutual fund services through Ajaib Sekuritas (online stock brokerage) and Ajaib Reksadana (online mutual funds), registered and supervised by OJK (The Financial Services Authority) and IDX (Indonesia Stock Exchange).
It acquired local securities firm PT Primasia Unggul Sekuritas in May 2020. According to Refinitiv data in 2020, Ajaib has become the sixth most active brokerage firm in Indonesia.
The pandemic year saw millennials rushing to explore investing in the stock exchange. According to the Indonesia Central Securities Depository (KSEI) data, 1.68 million new investors joined the market, up 53% from 2019.
The IDX has increased its previous target from 25% to 30% growth of new investors in the capital market (stocks, mutual funds, ETF, and bonds) by the end of 2021. By end of February 2021, the number of capital market investors had reached 4.5 million investors, of which 45% accounted for stock investors.