Bibit.id, a digital investment app in Indonesia, has announced that it has raised US$ 65 million in a funding round led by Sequoia Capital India.
The round was joined by Prosus Ventures, Tencent and Harvard Management Company while existing investors including AC Ventures and East Ventures also participated.
Bibit said that the funds raised will be used for the launch of new products, tech development, acquire talents, and invest heavily to increase ﬁnancial education and awareness to further build its platform.
Launched in early 2019, Bibit is a mutual fund robo-advisory that enables investors to build portfolios according to their risk proﬁles and investment goals in a simple and optimal way. Bibit’s demographic is made up of 90% millennials and ﬁrst-time investors.
Based on IDX and Central Custodian data, the number of mutual fund investors in Indonesia grew 78% YoY in 2020 to 3.2 million.
This growth was contributed primarily by millennials, who accounted for 92% of the new investors in 2020.
In the ﬁrst quarter of 2021 alone, more than 1 million new mutual fund investors came to the market.
Despite this rapid growth, however, less than 2% of Indonesians have participated in the capital market so far.
Sigit Kouwagam, CEO of Bibit.id commented,
“Previously, the stock market was seen as an intimidating place to invest. Bibit is leveraging on technology to make investment accessible to everyone, including the inexperienced ﬁrst-time investors.
Therefore, we are seeing an accelerated interest from retail investors into the capital market.”
Rohit Agarwal, VP, Sequoia India said,
“Indonesian mutual fund customers have grown almost 10x in the past ﬁve years. Savings via mutual funds is the ﬁrst step towards investing and Bibit has helped millions of consumers start their investing journey in a responsible manner.
Sequoia Capital India is excited to double down on the partnership as the company brings the same customer focus to stock investing with Stockbit,”