While many Indonesian investment apps aim to attract new investors with low fees and starting deposits, PINA targets the middle to upper classes with wealth management services. The app announced today that it has raised $3 million in seed funding from AC Ventures, Vibe.VC, and Y Combinator, with participation from XA Network.
The company was founded in 2021 by Daniel van Leeuwen, the former national marketing manager of Grab Indonesia. He is joined by technical co-founder Fajar Kuntoro, who was previously head of technology and engineering at Indonesian digital agency Mirum, Christian Hermawan, founder of Trust Securities and Hendry Chou, previously head of product design. at the edtech startup Zenius.
Van Leeuwen told TechCrunch that PINA was created because of the founders’ own personal finance challenges. As a result, they wanted to ensure that all Indonesians had access to financial advice, not just those able to afford the fees and minimums charged by personal wealth advisers.
He said Indonesia’s middle and upper class now number 52 million and PINA was established to give them access to investment services with no minimums or high fees as they invest for purposes such as buying of a home, retirement and the education of their children.
“Our direct experience working with private financial service providers made us realize that change would never come from existing providers,” Van Leeuwen said. “Chou, Fajar and I worked at [Indonesian conglomerate] Mirum where we consulted with leading financial services brands on how to digitize and transform their businesses. It opened our eyes to the problems and opportunities of making wealth management accessible, but also frustrating when we saw our clients’ inability to bring viable products to market due to their outdated infrastructure and business models.
PINA is among several Indonesian investment apps that have recently raised venture capital. Some examples include Pluang, GoTrade, Bibit, Ajaib, Pintu, and Pluang.
Van Leeuwen said current solutions are ideal for first-time investors and first-time investors by charging low minimums, but PINA differentiates itself by emphasizing the integration of planning, money management and planning on one platform. “By bringing everything together on one platform, we aim to deliver an experience they could never replicate with a human advisor or with a financial record on their phone filled with point-solution apps,” he said. declared.
PINA’s money management tools and advisors are free to use, and they monetize by charging when clients make an investment through the platform. Features include auto-managed portfolios and investments that require more user involvement. PINA also offers personalized financial advice, automated money management and investment tools in its apps. To use PINA, users link all of their financial accounts to the app and set their savings and investment goals.
PINA’s automatic diversified portfolios work by first determining a user’s investment objectives, time horizon, risk tolerance and priorities. Next, he invests in a portfolio of low-cost mutual funds. Van Leeuwen said his software automatically rebalances investments, selling those that exceed users’ target allocation and buying more of those that fall below. This is done when users fund their wallets or when the wallet drift reaches 5%.
Regarding its wealth management features, Van Leeuwen said PINA “aims to fill the so-called ‘advice gap'” by providing both affordable and personalized financial advice. By linking their financial accounts, including bank accounts, e-wallets, public retirement and investment accounts, users can see their net worth, monthly cash, and budget fluctuation over the past few months. The app also allows them to book a slot with a Certified Financial Advisor.
PINA plans to use its funding for user acquisition and by expanding its advisory and investing features and complementary services such as access to career coaching and exclusive member events.
In a prepared statement, Founder and Managing Partner of AC Ventures, Adrian Li, said, “The growing adoption of non-cash transactions along with the rise in the mass affluent people in Indonesia has enabled billion-dollar new opportunities to emerge for wealth management platforms that offer a full suite of services, including money management and investing. The PINA team brings deep knowledge and connection to the financial services industry, making PINA one of the most promising companies in the field.