Ovo Confirms Series B Investment to Bareksa Last Year
Marsya Nabila - 13 January 2020
Bareksa mutual fund startup confirmed, Ovo becomes the sole investor in its Series B funding with an undisclosed amount. The round is said to be closed by the end of last year.
"Ovo is the sole investor for Bareksa in the Series B funding. The round was closed at the end of last year. We're now focusing on synergy," Bareksa's Co-founder & CEO Karaniya Dharmasaputra told Dailysocial amidst the event of Ovo & Pegadaian collaboration announcement. (Wed 1/8)
On the same occasion, he emphasized on Ovo is yet to own Bareksa's major shares. Post the corporate action, Dharmasaputra has elected as Ovo's President Director through an announcement last September.
Since its debut five years ago, Bareksa only held external fundraising twice with only local players involved.
One of the to-do-list synergies with Ovo is to implant mutual fund products on Ovo's platform, also to have it as a payment option on Bareksa. Dharmasaputra ensured the product development will soon to be announced.
Aside from that, Bareksa is to add up new innovation outside mutual funds, including online gold purchasing with some partners and entering the secondary market for ORI products. The ORI agents are to support the government with easy access for investment in stock market.
"We're also developing robo advisor and re-framing the app. It is to be announced altogether around March or April 2020."
Regarding the sale of corporate obligation, he explained that it's yet to roll because they have to be registered first as a non-stock corporation. Previously, Bareksa has announced a collaboration with FIF to acquire retail investors.
"We can't do it right now due to regulations are still in discussion with IFA and also not possible, therefore it's still on progress. We have to apply for a new license as the non-stock corporation."
Bareksa has claimed to record up to 400% managed funds growth last year. The total public's fund invested in Bareksa since 2016 has reached Rp5 trillion. Meanwhile, as seen from the AUM per December 2019, it's almost Rp2 billion. There are hundreds of mutual fund products provided by some investment managers sold through Bareksa.
Performance and partnership with Ovo and Pegadaian
Karaniya, who is also the President Director of Ovo, disclosed that the company has been processing a million transactions in real-time last year, with transaction growth at over 70%.
The transaction value increased by 55% and monthly active users increased by over 40% at 11-12 million. From the total Ovo users, 28% of those are underbanked or having limited access to financial products.
In order to increase penetration to the rural area, the company partnered up with Pegadaian. In the early stage, there will be agents in the Pegadaian outlets to help with submission, registration, and Ovo upgrade. Later, it'll be needed for disbursement from pledge assets, cash in, and cash out.
The soon-to-be product will be the Online Multi payment (MPO). This is a payment service for various kinds of bills, monthly subscriptions, balance top-up, ticket, health insurance, through Pegadaian outlets. The company has 4,148 outlets and 13.4 million customers throughout Indonesia.
"The partnership with Ovo is to increase Pegadaian customers' access into the growing digital economy ecosystem. Pegadaian needs to make sure equal access to the integrated, safe, comfortable and accountable modern payment system," Pegadaian's President Director, Kuswiyoto said.
–Original article is in Indonesian, translated by Kristin Siagian