Along with the stock market, cryptocurrency is also seeing an uptick among retail investors in Indonesia. Pintu, a platform focused on first-time cryptocurrency buyers, announced today it has raised a $6 million Series A, led by Pantera Capital, Intudo Ventures and Coinbase Ventures.
Other participants in the round included Blockchain.com Ventures, Castle Island Ventures and Alameda Ventures.
The Indonesian Commodity Futures Trading Regulatory Agency (also known as Bappepti) began regulating Bitcoin and other cryptoassets as commodities two years ago, paving the way for licensed brokers like Pintu. Founded last year by Jeth Soetoyo to make it easier for first-time investors to purchase Bitcoin, Ethereum and other cryptocurrencies, Pintu is registered under Bappebti and the Ministry of Communication and Informatics as a licensed cryptoassets broker.
A wave of interest in capital investing during the COVID-19 pandemic, especially among millennials who want alternatives to keeping their money in low-yield savings accounts, spurred interest in investment apps like Ajaib, Bibit and Pluang, which have all recently raised funding.
Many first-time investors are also looking at cryptocurrencies. According to Pintu’s internal estimates, last year Indonesia processed $10 billion USD in cryptoassets transactions, mostly through retail investors.
Pintu chief operating officer Andrew Adjiputro told TechCrunch in an email that many Indonesian retail traders see crypto as an alternative investment asset class, and that the majority of retail investors are aged 20 to 35 years old. But the company is starting to see more older investors as crypto gains popularity.
“Based on our internal survey, in terms of public’s top of mind asset classes, we see crypto as a top three asset class in Indonesia, alongside gold and mutual funds,” he said.
Other Indonesian cryptocurrency exchanges include Indodax and Tokocrypto. When asked how Pintu differentiates, Adjiputro said it focuses on the mass market to reach mainly first-time crypto users, and its value proposition lies in its mobile-first app, easy user experience and educational materials developed by the company.
“For most Indonesians, the concept of investing and trading is new, because historically penetration in these categories have been so low,” he explained. “So what we’re seeing is also the opportunity to help Indonesians understand the concept of investing/trading and along the way leapfrog investments into other asset classes. What this means is that there is a large base of underserved first-time investors that demand a simple and intuitive trading platform where they are handheld from the start to finish and also educated on the fundamentals of investing/trading on top of that of crypto.”
Pintu’s new funding will be used on marketing, hiring and product development.