Hello there

In Bahasa Indonesian, the word ajaib means magical or miraculous.

That may be why an Indonesian startup by the same name has achieved great feats in a short span of time.

Stock trading startup Ajaib became the country's latest unicorn -- within just 2.5 years -- making it the second fastest to achieve the milestone after payments platform Ovo.

The venture capital world expects Ajaib to become as big as US-based Robinhood, one of the pioneers of online stock trading.

As Indonesia wakes up to the new hobby of stock trading via apps, several others apart from Ajaib have joined the rush to grab a piece of the flourishing market.

These include names such as Stockbit and Pluang, as well as Indonesia’s major banks and asset managers that offer apps alongside their in-house services.

While it’s worth noting that Indonesia’s 2.7 million stock investors make up only about 1% of the country’s population, the growing interest from the younger generation, especially millennials and Gen Z, is making it a hot industry.

In today’s big story, my colleague Jofie Yordan dives deep into the bullish world of Indonesia’s stock trading sector. Read on to know more.

-- Samreen

THE BIG STORY

Ajaib, Stockbit drive Indonesia's stock-trading boom

Image credit: Timmy Loen

Ajaib, for one, became a unicorn in just 2.5 years. But rivals - including more diversified newcomers - are reaching for a slice of the pie.

THE HOT TAKE

Investor interest in Philippine fintech heats up

Here’s what happened:

• Singapore-headquartered Tonik, a neobank operating in the Philippines, raised US$131 million in a series B round
• Japanese megabank Mizuho led the round
• Tonik is one of six applicants that was granted a digital bank license in the Philippines

Here’s what it means:

Fintech investors in Southeast Asia look to Indonesia as a potential gold mine.

The problem is that the space is getting crowded - there are at least 14 digital banks either in operation or awaiting a license to operate. The market is big enough to accommodate several players, but competition is likely to be intense.

Investors who cast their eyes across the sea will find that the Philippines, another Southeast Asian archipelago, has many of the same qualities that make Indonesia such an attractive market for fintech companies.

See also: Banking on a digital remedy in the Philippines

Both countries have large populations, many of whom remain unbanked or underbanked, with similar income levels, and room for greater urbanization that will drive demand for financial services.

NEWS YOU SHOULD KNOW

Also check out Tech in Asia’s coverage of the fintech scene here.
 

1️⃣ Exclusive: Bukalapak co-founders back B2B fintech startup amid funding spree

The investment in Monit marks Init 6’s third funding this year, following a quietly prolific 2021 for the Indonesia-based VC firm.
 

2️⃣ YC-backed fintech unicorn enters SEA

Razorpay has acquired a majority stake in Curlec, a Malaysian fintech firm, for an undisclosed amount.
 

Razorpay founders Harshil Mathur and Shashank Kumar / Image credit: Razorpay
 

3️⃣ This fintech firm’s fight with its founder may end in a courtroom

After alleged boardroom battles and claims of fraud, BharatPe's board and its co-founder Ashneer Grover could be embroiled in a legal tussle.
 

4️⃣ Blockchain deals boost SG fintech funding to highest in 5 years: report

Fintech funding in Singapore reached nearly US$4 billion in 2021 as investments in the crypto and blockchain space continued to rise, noted a KPMG report.

FYI

1️⃣ Why Vietnam’s fintech battleground is shifting gear

More than half a billion dollars was invested into the country’s fintech sector in 2021.

That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter here.

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