Along the with the stock market, the cryptocurrency is also seeing a rebound among retail investors in Indonesia. Pintu, a platform focused on first-time buyers of cryptocurrencies, announced today that it has raised a Series A of $ 6 million, led by Pantera Capital, Intudo Ventures and Coinbase Ventures.
Other participants in the round were 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 crypto assets 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 crypto asset broker.
A wave of interest in capital investment 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 such as Ajaib, Bibit, and Pluang, who have recently raised funds.
Many first-time investors are also considering cryptocurrencies. According to internal Pintu estimates, Indonesia processed $ 10 billion worth of crypto asset transactions last year, primarily through retail investors.
Pintu COO Andrew Adjiputro told TechCrunch in an email that many Indonesian retail traders view cryptocurrencies as an alternative investment asset class, and that most retail investors are between the ages of 20 and 35. But the company is starting to see more older investors as cryptocurrencies gain popularity.
“Based on our internal survey, in terms of the public’s top asset classes, we view cryptocurrencies as one of the top three asset classes in Indonesia, alongside gold and mutual funds,” he said.
Other Indonesian cryptocurrency exchanges include Indodax and Tokocrypto. When asked how Pintu differs, Adjiputro said it is targeting the mass market to primarily reach 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 investment and trade is new, because historically penetration in these categories has been very low,” he explained. “So what we are seeing is also the opportunity to help Indonesians understand the investment / trade concept and, along the way, make a leap towards investing in other asset classes. What this means is that there is a large base of underserved first-time investors who demand a simple and intuitive trading platform where they are handled in hand from start to finish and are also briefed on the fundamentals of investing / trading in addition to cryptography “.
The new Pintu funds will be used for marketing, recruiting and product development.