Startup FUNDtastic Raises Series A Funding of Up to IDR 107 Billion
FUNDtastic’s investment and financial management platform raised a total of US $ 7.7 million or around IDR107 billion using an exchange rate of IDR 14,000 per dollar, in early 2021. Harry Hartono, co-founder and CEO of FUNDtastic is optimistic about this new funding.
FUNDtastic is optimistic that it can achieve the company’s mission optimally, namely strengthening the financial capacity of the Indonesian people through investment. Harry said investor confidence in FUNDtastic through funding can support the development of investment products that can be accessed easily, including novice investors.
“We will develop this new funding to expand market reach and enrich products and features, with the aim of being able to better serve the needs of the community,” said Harry Hartono, co-founder and CEO of FUNDtastic in a press statement, Monday (22/2/2021 ).
Meanwhile, the growth of the digital investment application business is still highly likely to see an increase in investment trends through digital platforms. This is driven by the growth in penetration of cellular telephones and internet users in Indonesia. The series A funding pocketed by FUNDtastic is led by Ascend Capital Group, along with Indivara Group and other investors.
Number of Users Increasing in 2020
In 2020, the number of FUNDtastic account users has increased almost five times compared to 2019. Even though the COVID-19 pandemic has hit the wheels of the Indonesian economy, public awareness of the importance of investment and the need for emergency funds is increasing.
The Indonesia Stock Exchange noted that the number of capital market investors reached 3.53 million, of which around 57.5 percent were mutual funds and bonds investors by November 2020. Meanwhile, Statista predicts that mobile phone users in 2020 are predicted to reach 70 percent of Indonesia’s total population. , and will continue to increase until it reaches 89 percent by 2025.
Meanwhile, 73.7 percent or 196.7 million Indonesians are internet users until the second quarter of 2020, according to data from the Indonesian Internet Service Providers Association (APJII).
Until 2020, FUNDtastic has experienced an increase in both users and the amount of managed funds during 2020. The total number of FUNDtastic users in 2020 is 110,000 users and the total managed funds are around IDR 200 billion.
According to Franky Chandra, co-founder and Chief Investment Officer (CIO) of FUNDtastic, this increase was driven by several factors, apart from the fact that FUNDtastic provides products based on community needs, especially the increase in users is also due to a pandemic situation that requires accelerated absorption of digital finance.
Optimism for Rapid Growth in 2021
In addition, FUNDtastic has acquired the Invisee platform in 2020, so that FUNDtastic users have almost 4X growth after the acquisition. As an investment platform and digital financial manager, FUNDtastic offers convenience for new users, starting from the registration process, transaction speed, and convenience in investing. Thus, users continue to increase their investment in the FUNDtastic platform without experiencing any problems.
Franky Chandra is optimistic that FUNDtastic’s business growth in 2021 will be even higher, seeing user retention continue to invest in the FUNDtastic platform during 2020. Likewise Ascend Capital, one of the investors who sees FUNDtastic’s management and team as a solid foundation in supporting FUNDtastic’s business growth.
“FUNDtastic management and a solid IT team are one of the most important and valuable assets for startups. it also has a good business model and a strong growth strategy through marketing strategies and partnerships with other financial institutions,” said Muljadi Tjandra, Partner of Ascend Capital.
“FUNDtastic is also able to reach people who have not been reached by banking products (unbanked) to actively participate in becoming investors. A progressive step that can easily expand prospective new investors to invest,” he added.