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Bibit raises another growth round led by Sequoia Capital India, this time for $65M

Four months after leading a $30 million growth round in Bibit, Sequoia Capital India has doubled down on its investment in the Indonesian robo-advisor app. Bibit announced today that the firm led a new $65 million growth round 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 latest round will be used on developing and launching new products, hiring and increasing Bibit’s financial education services.

Bibit was launched in 2019 by Stockbit, a stock investing platform and community, and is part of a crop of Indonesian investment apps focused on new investors. Others include SoftBank Ventures-backed Ajaib, Bareksa, Pluang and FUNDtastic. Bibit runs robo-advisor services for mutual funds, investing users’ money based on their risk profiles, and claims that 90% of its users are millennials and first-time investors.

According to Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan), the number of retail investors grew 56% year-over-year in 2020. For mutual funds in particular, Bibit said investors grew 78% year-over-year to 3.2 million, based on data from the Indonesia Stock Exchange and Central Securities Custodian.

Despite the economic impact of COVID-19, interest in stock investing grew as people took advantage of market dips (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 investing more accessible with lower fees and minimum investment amounts than traditional brokerages like Mandiri Sekuritas, which also saw an increase in new retail investors and average transaction value 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 to first-time investors. For example, Ajaib also presents its financial educational features as a selling point.

In press statement, Sequoia Capital India vice president Rohit Agarwal 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.”

 

Investment app for millennials Groww raises $83 million at over $1 billion valuation

More than 200 million people in India transact money digitally, but fewer than 30 million invest in mutual funds and stocks.

An Indian startup that is attempting to change this figure by courting millennials announced a new financing round on Wednesday and turned into the newest unicorn in the world’s second largest internet market.

Bangalore-based Groww has raised $83 million in its Series D financing round, which valued the Indian startup at more than $1 billion, up from $250 million in $30 million Series C in September last year.

Tiger Global led the new round, and existing investors Sequoia Capital India, Ribbit Capital, YC Continuity and Propel Venture Partners participated in it, the five-year-old Indian startup said, which has raised $142 million to date.

On a side note, Groww is the eighth Indian startup to attain the unicorn status this year — and fourth this week. Social commerce Meesho turned a unicorn on Monday, fintech firm CRED on Tuesday, and earlier today epharmacy firm PharmEasy announced a new financing round that valued the firm at about $1.5 billion.

Groww allows users to invest in mutual funds, including systematic investment planning (SIP) and equity-linked savings, gold, as well as stocks, including those listed at U.S. exchanges. The app offers every fund that is currently available in India.

The startup has amassed over 8 million registered users, two-thirds of whom are first-time investors, Lalit Keshre, co-founder and chief executive of Groww, told TechCrunch in an interview.

Keshre said the startup will deploy the fresh funds to accelerate its growth, and hire more talent. “We now have fuel for longer-term thinking and faster growth,” he said.

More than 60% of Groww users come from smaller cities and towns of India and 60% of these have never made such investments before, said Keshre. The startup said it has conducted workshops in several small cities to educate people about the investment world. The coronavirus pandemic has also accelerated the startup’s growth as youngsters explore new hobbies.

Investment app for millennials Groww raises $83 million at over $1 billion valuation

More than 200 million people in India transact money digitally, but fewer than 30 million invest in mutual funds and stocks.

An Indian startup that is attempting to change this figure by courting millennials announced a new financing round on Wednesday and turned into the newest unicorn in the world’s second largest internet market.

Bangalore-based Groww has raised $83 million in its Series D financing round, which valued the Indian startup at more than $1 billion, up from $250 million in $30 million Series C in September last year.

Tiger Global led the new round, and existing investors Sequoia Capital India, Ribbit Capital, YC Continuity and Propel Venture Partners participated in it, the five-year-old Indian startup said, which has raised $142 million to date.

On a side note, Groww is the eighth Indian startup to attain the unicorn status this year — and fourth this week. Social commerce Meesho turned a unicorn on Monday, fintech firm CRED on Tuesday, and earlier today epharmacy firm PharmEasy announced a new financing round that valued the firm at about $1.5 billion.

Groww allows users to invest in mutual funds, including systematic investment planning (SIP) and equity-linked savings, gold, as well as stocks, including those listed at U.S. exchanges. The app offers every fund that is currently available in India.

The startup has amassed over 8 million registered users, two-thirds of whom are first-time investors, Lalit Keshre, co-founder and chief executive of Groww, told TechCrunch in an interview.

Keshre said the startup will deploy the fresh funds to accelerate its growth, and hire more talent. “We now have fuel for longer-term thinking and faster growth,” he said.

More than 60% of Groww users come from smaller cities and towns of India and 60% of these have never made such investments before, said Keshre. The startup said it has conducted workshops in several small cities to educate people about the investment world. The coronavirus pandemic has also accelerated the startup’s growth as youngsters explore new hobbies.