Bibit Collaborates with Bank Jago to Manage Investment Fund

Mutual fund investment startup Bibit has attracted more than one million users and recorded assets under management (AUM) of over IDR 5 trillion. To attract more investors, Bibit hooked up with Bank Jago.

“This collaboration is to reach more consumers,” said Bibit CEO Sigit Kouwagam during a virtual press conference, Monday (5/7). This time, it hooked up with Bank Jago.

This collaboration allows investors to transact using the bank account supported by Gojek. Users can also open Bank Jago accounts through the Bibit application.

The second strategy is to educate the public about financial literacy. Lastly, improving technology capabilities such as robo advisors. “This technology facilitates precise investment and careful risk calculation,” he said.

Robo advisor analyzes asset portfolio and adapts to user profile. This is because each user has different financial conditions and investment objectives.

Attracted more than 1 Million Users

Currently, Bibit has attracted more than one million users. On the one hand, the Indonesian Central Securities Depository (KSEI) indicated that there were an additional 1.52 million new retail investors during January – May.

The Indonesia Stock Exchange (IDX) and KSEI also show that the number of mutual fund investors entering Indonesia grew 78% year on year (yoy) to 3.2 million last year.

The increase was contributed by millennials. As many as 92% of novice investors are aged 21-40 years. Around 90% of Bibit’s users are also dominated by millennial investors.

Bibit also recorded a managed fund of IDR 5 trillion. “The limitations of physical interaction make many users try digital services, including investment,” said Sigit.

Based on DailySocial’s research, Bibit is the most chosen mutual fund investment application in the country. This startup is part of the investment startup, Stockbit, which was founded in 2013. 

Stockbit launched Bibit, which is based on a robo advisor in early 2019. It allows the investors to invest starting from 10 thousand rupiah. In 2019 East Ventures led the series A funding for Bibit. 

Other participating investors are FreakOut, Convergence Ventures, and past investors such as Ideosource, 500 Startups, and Braavos Ventures. Bibit also raised US$ 65 million or IDR 939 billion in funding led by Sequoia Capital in May.

Other participating investors are Tencent, Prosus Ventures, and Harvard Management Company, as well as former investors such as AC Ventures and East Ventures. Sequoia India VP Rohit Agarwal said Bibit had great potential for growth.

“Indonesian mutual fund customers have grown almost 10-fold in the last five years. It’s the first step towards investment and Bibit has helped millions of consumers,” Rohit said in May (3/5).

Will Develop More Features

In the future, Jago and Bibit will continue to complement other integrated features to provide convenience for consumers and solve daily problems often faced by bank customers and retail investors in Indonesia.

“This is just the beginning of the collaboration between Jago and Bibit. Various other innovative services and features will be available in the near future,” he added.

This is the commitment of the two companies to continue to provide products and services that are relevant to customer needs.

In addition, both of them will work together with other digital ecosystem players to expand financial access while realizing Jago’s aspirations.

Bibit CEO Sigit Kouwagam said that the integration of bank applications and digital APERD will provide a lot of added value for consumers.

At least, consumers don’t need to top up their balances every time they want to buy mutual funds at Bibit because transactions are done by debiting Bank Jago’s account automatically.

Sigit is optimistic that this breakthrough is very relevant to the needs of Bibit users, who are dominated by millennial and digital-savvy customers. Customers of this generation generally crave service that is fast, easy, cheap, and safe.