Ajaib Group, an internet funding platform that claims it now runs the fifth-largest inventory brokerage in Indonesia by variety of trades, introduced it has raised a $25 million Series A led by Horizons Ventures, the enterprise capital agency based by Li Ka-Shing, and Alpha JWC. Returning buyers SoftBank Ventures Asia, Insignia Ventures and Y Combinator additionally participated within the spherical, which was made in two closes.
Founded in 2019 by chief govt officer Anderson Sumarli and chief working officer Yada Piyajomkwan, Ajaib Group focuses on millennials and first-time buyers, and at present claims a million month-to-month customers. It has now raised a complete of $27 million, together with a $2 million seed spherical in 2019.
Stock funding has a really low penetration price in Indonesia, with solely about 1.6 million capital market buyers within the nation, or lower than 1% of its inhabitants (as compared, about 55% of Americans personal shares, in line with Gallup information).
The very low penetration price, coupled with rising curiosity within the capital market amongst retail buyers through the pandemic, has spurred VC curiosity in on-line funding platforms, particularly ones that concentrate on millennials. Last week, Indonesian funding app Bibit introduced a $30 million development spherical led by Sequoia Capital India, whereas one other on-line funding platform, Bareksa, confirmed an undisclosed Series B from fee app OVO final yr.
Indonesian robo-advisor app Bibit raises $30 million led by Sequoia Capital India
Ajaib Group’s founders stated it differentiates as a low-fee inventory buying and selling platform that additionally gives mutual funds for diversification. Bibit is a robo-advisor for mutual funds, whereas Bareksa is a mutual fund market.
In an electronic mail, Sumarli and Piyajomkwan instructed TechCrunch that the inventory funding price is low in Indonesia as a result of it’s sometimes executed by excessive net-worth people who use offline brokers and might afford excessive commissions. Ajaib Group was launched in 2019 after Sumarli grew to become annoyed by the shortage of funding platforms in Indonesia the place he might additionally find out about inventory buying and selling.
Inspired by firms like Robinhood within the United States and XP Investimentos in Brazil, Ajaib Group was created to be a mobile-first inventory buying and selling platform, with no offline brokers or branches. It appeals to first-time buyers and millennials with a easy consumer interface, in-app training options and a neighborhood the place folks can share funding concepts and low charges.
Since folks favor to take a position small quantities when attempting out the app for the primary time, Ajaib requires no minimums to open a brokerage account. Piyajomkwan stated “we sometimes see buyers triple their funding quantity inside the second month of investing with Ajaib.”
Ajaib Group’s platform now contains Ajaib Sekuritas for inventory buying and selling and Ajaib Reksadana for mutual funds. The firm says that Ajaib Sekuritas grew to become the fifth-largest inventory brokerage in Indonesia by variety of trades simply seven months after it launched in June 2020.
The Indonesian authorities and Indonesia Stock Exchange have launched initiatives to encourage extra inventory investing. Some of Ajaib Group’s Series A can be used for its #MentorInvestai marketing campaign, which works with the federal government to coach millennials about investing and monetary planning. The spherical may even be spent on increasing Ajaib’s tech infrastructure and merchandise, and to rent extra engineers.
Ajaib could ultimately increase into different Southeast Asian markets, however for the close to future, it sees loads of alternative in Indonesia. “Ajaib was constructed with regional aspiration, having two founders from the 2 largest capital markets in Southeast Asia, Indonesia and Thailand,” Piyajomkwan stated. “But for the speedy time period, we’re targeted on Indonesia as funding penetration continues to be low and there are various extra millennial buyers we will serve.”
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