Equity Monday: Deliveroo, ServiceTitan, and Robinhood for everywhere

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.

This morning was a fun mix of news, including some early-stage and late-stage startups entries, along with the latest from the public markets and the great IPO game. Here’s the rundown:

It was a lot, but when have we started the week anything less than fully behind? Chat Wednesday!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!

#ajaib, #bilibili, #cazoo, #deliveroo, #equity-podcast, #robinhood, #servicetitan, #tc, #zhihu

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Ajaib raises $65M Series A extension led by Ribbit Capital, increasing the round’s total to $90M

Ajaib, the Indonesian investment app, has added $65 million to its Series A, bringing the round’s new total to $90 million. The extension was led by Ribbit Capital, the fintech investor that also led Robinhood’s $3.4 billion funding last month. Ajaib is Ribbit Capital’s first investment in Southeast Asia.

The extension will be used to expand Ajaib’s product development and engineering capabilities. The startup, which claims to run the fourth largest stock brokerage in Indonesia based on number of trades, announced the $25 million first closing of its Series A in January. Other participants included Y Combinator Continuity, ICONIQ Capital, Bangkok Bank PLC, and returning investors Horizons Ventures, SoftBank Ventures Asia, Alpha JWC and Insignia Ventures. David Velez and SG Lee, the founders of fintech startups Nubank and Toss respectively, also invested.

Ajaib was founded in 2019 by chief executive officer Anderson Sumarli and chief operating officer Yada Piyajomkwan. It is among a new crop of fintech startups that are focused on making stock investing more accessible to first-time investors. In Indonesia, less than 1% of the population own stocks, but that number is increasing, especially among millennials.

Other investment apps in Indonesia that have also raised funding recently include Pluang, Bibit and Bareksa. Ajaib’s founders told TechCrunch in January that it differentiates as a low-fee stock trading platform that also offers mutual funds for diversification.

In a press statement, Ribbit Capital managing partner Micky Malka said, “We are witnessing an unprecedented revolution in retail investing around the world. Ajaib is at the forefront of this revolution and is on their way to building the most trusted brand in the market. Their commitment to bring transparency and serve Indonesia’s millennial investors with the best products is at par with the best companies worldwide.”

#ajaib, #asia, #fintech, #fundings-exits, #indonesia, #investment-app, #southeast-asia, #startups, #stocks, #tc

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Indonesian investment platform Ajaib gets $25 million Series A led by Horizons Venture and Alpha JWC

Ajaib Group, an online investment platform that says it now runs the fifth-largest stock brokerage in Indonesia by number of trades, announced it has raised a $25 million Series A led by Horizons Ventures, the venture capital firm founded by Li Ka-Shing, and Alpha JWC. Returning investors SoftBank Ventures Asia, Insignia Ventures and Y Combinator also participated in the round, which was made in two closes.

Founded in 2019 by chief executive officer Anderson Sumarli and chief operating officer Yada Piyajomkwan, Ajaib Group focuses on millennials and first-time investors, and currently claims one million monthly users. It has now raised a total of $27 million, including a $2 million seed round in 2019.

Stock investment has a very low penetration rate in Indonesia, with only about 1.6 million capital market investors in the country, or less than 1% of its population (in comparison, about 55% of Americans own stocks, according to Gallup data).

The very low penetration rate, coupled with growing interest in the capital market among retail investors during the pandemic, has spurred VC interest in online investment platforms, especially ones that focus on millennials. Last week, Indonesian investment app Bibit announced a $30 million growth round led by Sequoia Capital India, while another online investment platform, Bareksa, confirmed an undisclosed Series B from payment app OVO last year.

Ajaib Group’s founders said it differentiates as a low-fee stock trading platform that also offers mutual funds for diversification. Bibit is a robo-advisor for mutual funds, while Bareksa is a mutual fund marketplace.

In an email, Sumarli and Piyajomkwan told TechCrunch that the stock investment rate is low in Indonesia because it is typically done by high net-worth individuals who use offline brokers and can afford high commissions. Ajaib Group was launched in 2019 after Sumarli became frustrated by the lack of investment platforms in Indonesia where he could also learn about stock trading.

Inspired by companies like Robinhood in the United States and XP Investimentos in Brazil, Ajaib Group was created to be 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 prefer to invest small amounts when trying out the app for the first time, Ajaib requires no minimums to open a brokerage account. Piyajomkwan said “we typically see investors triple their investment amount within the second month of investing with Ajaib.”

Ajaib Group’s platform now includes Ajaib Sekuritas for stock trading and Ajaib Reksadana for mutual funds. The company says that Ajaib Sekuritas became the fifth-largest stock brokerage in Indonesia by number of trades just seven months after it launched in June 2020.

The Indonesian government and Indonesia Stock Exchange have launched initiatives to encourage more stock investing. Some of Ajaib Group’s Series A will be used for its #MentorInvestai campaign, which works with the government to educate millennials about investing and financial planning. The round will also be spent on expanding Ajaib’s tech infrastructure and products, and to hire more engineers.

Ajaib may eventually expand into other Southeast Asian markets, but for the near future, it sees plenty of opportunity in Indonesia. “Ajaib was built with regional aspiration, having two founders from the two biggest capital markets in Southeast Asia, Indonesia and Thailand,” Piyajomkwan said. “But for the immediate term, we are focused on Indonesia as investment penetration is still low and there are many more millennial investors we can serve.”

 

#ajaib, #asia, #fintech, #fundings-exits, #indonesia, #investment-app, #southeast-asia, #startups, #tc

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