Four months after leading a $ 30 million growth cycle in Bibit, Sequoia Capital India has doubled its investment in the Indonesian robo-advisor app. Bibit announced today that the company is leading a new round of $ 65 million growth that also included participation from Prosus Ventures, Tencent, Harvard Management Company and returning investors AC Ventures and East Ventures.
This brings Bibit’s total funding to $ 110 million, including a Series A announced in May 2019. Its final cycle will be used to develop and launch new products, hire and grow Bibit’s financial education services.
Bibit was launched in 2019 by Stockbit, a stock market investment platform and community, and is part of a harvest of Indonesian investment apps focused on new investors. Others include Ajaib, Bareksa, Pluang and FUNDtastic, backed by SoftBank Ventures. Bibit offers robo-advisor services for mutual funds, investing users’ money based on their risk profiles and claims that 90% of its users are millennials and novice investors.
According to the Indonesian Financial Services Authority (Otoritas Jasa Keuangan), the number of retail investors increased 56% year over year in 2020. For mutual funds in particular, Bibit said that investors had risen 78% year over year to 3.2 million, based on data from the Indonesia Stock Exchange and the Central Securities Depository.
Despite the economic impact of COVID-19, interest in investing in stocks increased as people took advantage of market declines (the Jakara Composite index fell in the first quarter of 2020, but is now recovering steadily ). Apps like Bibit and its competitors want to make capital investment more accessible with lower fees and minimum investment amounts than traditional brokerage houses like Mandiri Sekuritas, which have also seen an increase in the number of new investors from detail and the average value of transactions last year.
But the percentage of retail investors in Indonesia is still very low, especially compared to markets like Singapore or Malaysia, presenting growth opportunities for investment services.
Apps like Bibit focus on content that helps make capital investing less intimidating for new investors. For example, Ajaib also presents its financial educational features as a selling point.
In a press release, Sequoia Capital India Vice President Rohit Agarwal said: “Indonesian mutual fund clients have grown almost 10 times in the past five years. Saving through mutual funds is the first step towards investing, and Bibit has helped millions of consumers start their investing journeys responsibly. Sequoia Capital India is excited to double its partnership as the company brings the same client focus to equity investing with Stockbit. “