Ajib group, An online investment platform that says it now operates the fifth-largest stock brokerage by the number of trades in Indonesia, announced that it raised $ 25 million led by venture capital firm Horizon Ventures, founded by Li Ka-shing and Alpha Series. JWC. Returning investors SoftBank Ventures Asia, Insignia Ventures and Y Combinator also participated in the round, which was created in two close.
Founded in 2019 by Chief Executive Officer Anderson Sumarli and Chief Operating Officer Yada Piajomakwan, the Ajaib Group focuses on millennials and first-time investors, and currently boasts one million monthly users. It has now raised a total of $ 27 million, including a $ 2 million seed round in 2019.
Only Indonesia has a very low rate of stock investment About 1.6 million capital market investors In the country, or less than 1% of its population (in comparison,) About 55% of Americans own stock, According to Gallup data).
Very low penetration rate, together with Increased interest in capital market among retail investors during epidemicHas promoted VC interests in online investment platforms, particularly those that focus on millennials. Last week, Indonesian investment app Bibit announced a $ 30 million development round led by Sequoia Capital India, while another online investment platform, Bareilly, Confirmed An unknown Series B from the payment app OVO last year.
The founders of the Ajaib Group stated that it is differentiated as a low-fee share trading platform that also offers mutual funds for diversification. Bibit is a robo-advisor to mutual funds, while Barx is a mutual fund marketplace.
In an email, Sumerli and Piajomquan told TechCrunch that the rate of stock investment in Indonesia is low because it is usually done by high net-worth individuals who use offline brokers and can afford higher commissions. The Ajari Group was launched in 2019 after being disappointed by the lack of investment platforms in Indonesia, where it could also learn about stock trading.
Inspired by companies such as Robinhood in the United States and XP Investimos in Brazil, the Ajaib Group was created a mobile-first stock trading platform with no offline brokers or branches. It appeals to first-time investors and millennials with a simple user interface, in-app education features, and a community where people can share investment ideas and low fees.
Since people like to invest small amounts when trying out the app for the first time, there is no minimum requirement for Ajayab to open a brokerage account. “We usually see investors triple their investment amount within the second month of investing with Ajayb,” Piajomkwan said.
The platform of the Ajaib Group now includes Ajaib Securitas for stock trading and Ajaib Rexdana for mutual funds. The company says that just seven months after its launch in June 2020, Ajaib Secritas became the fifth largest stock brokerage in Indonesia.
The Indonesian government and the Indonesia Stock Exchange have initiated initiatives to encourage more stock investment. A few series A of the Ajayb Group will be used for its #MentorInvestai campaign, which works with the government to educate them about investment and financial planning. The round will also be spent on expanding Ajayb’s technical infrastructure and products and hiring more engineers.
Ajayab may eventually expand into other Southeast Asian markets, but for the foreseeable future, it sees considerable opportunities in Indonesia. “Ajaib was built with regional aspiration, having two founders from the two largest capital markets in Southeast Asia, Indonesia and Thailand,” Piazomkwan said. “But for the immediate term, we are focusing on Indonesia as the reach of investment is still low and there are many more millennial investors we can serve.”