Indonesia-based stock investing app Stockbit has raised an undisclosed amount in a Series A funding round led by East Ventures, the startup said in a statement.
New investors participating in the round include Convergence Ventures, FreakOut, and several notable angel investors, while existing backers including 500 Startups, Ideosource and Braavos Ventures also re-invested in the startup.
Founded in 2013 as a social network for stock investors, Stockbit has evolved into an app that integrates stock trading, information aggregation, and social networking. It primarily targets the millennials.
Earlier this year, the company completed the acquisition of mutual fund seller Bibit before re-launching it as a robo-advisor app that helps people build a personalized portfolio and invest in an optimal way.
Stockbit says the fresh capital will help accelerate the company’s mission to democratize capital market investment in Indonesia.
“Despite its lucrative return, first-time traders in Indonesia still intimidated to make an investment in the capital market due to lack of knowledge, lack of access to high-quality wealth managers, and high fees of professional advisory services. They often faced difficulties to navigate around the fast-changing nature of the stock market. With Stockbit, we aim to make investment easy and optimal for everyone,” said Stockbit CEO Wellson Lo.
Stockbit aims to capitalize on the growing retail investment trend in Indonesia particularly among the younger generation.
According to IDX data, the number of retail investors in Indonesia grew 40 per cent year-on-year in 2018. This growth was contributed mainly by the millennials, where 70 per cent of the new investors in 2018 were aged 21-40 years. Despite this rapid growth, fewer than 1 per cent of Indonesians have participated in the stock market so far.
Stock and mutual fund investments have become an attractive business of late in the country’s tech scene, with most of the country’s unicorns launching features allowing their users to make retail investments through their respective platforms.
GOJEK’s Go-Pay has teamed up with Bibit for its feature, while OVO has turned to Bareksa, which has also previously partnered with Tokopedia and Bukalapak for their respective mutual fund investment offerings.