While many of Indonesia’s investment apps are focused on attracting first-time investors with low fees and initial deposits, PINA targets the middle and upper classes with asset management services. The app announced today that it has raised $3 million in seed funding from AC Ventures, Vibe.VC and Y Combinator, with input from XA Network.
The company was founded in 2021 by Daniel van Leeuwen, the former Head of Marketing at Grab Indonesia. He was joined by tech 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 Chow, who previously led product design at edtech startup Zenius.
Van Leeuwen told TechCrunch that PINA was created because of the founders’ own personal finance issues. As a result, they wanted to make sure that all Indonesians have access to financial advice, not just people who can afford the fees and minimum fees charged by personal wealth consultants.
He said the middle and upper class of Indonesians currently comprised 52 million people and PINA was created to give them access to investment services without high minimum fees and commissions as they invest for purposes including buying a house, retirement and education of their children.
“Our first-hand experience with private financial service providers has made us realize that change never comes from existing providers,” Van Leeuwen said. “Chow, Fajjar and I worked in [Indonesian conglomerate] Mirum, where we advised major financial services brands on the digitization and transformation of their businesses. It opened our eyes to the challenges and opportunities to make asset management affordable, but also disappointed when we saw our clients’ inability to bring viable products to market due to their outdated infrastructure and business models.”
Van Leeuwen said the current solutions are great for beginners and new investors as they charge low minimum amounts, but PINA is different in that it focuses on integrating planning, money management and scheduling into one platform. “By bringing everything together on one platform, we aim to deliver an experience they could never replicate with a human consultant or a financial folder on their phone full of point solution apps,” he said.
The use of PINA’s money management tools and advisors is free, and they are monetized by charging a fee when clients make investments through the platform. Features include automatically managed portfolios and investments that require more user involvement. PINA apps also feature personalized financial advice, automated money management, and investment tools. To use PINA, users link all their financial accounts to the app and set their savings and investment goals.
PINA’s automatic diversified portfolios work by first defining the user’s investment goals, time horizon, risk tolerance and priorities. He then invests in a portfolio of low-cost mutual funds. Van Leeuwen said its software will automatically rebalance investments, selling those that are above the user allocation target and buying more of those that fall below it. This is done when users fund their portfolios or when portfolio drift reaches 5%.
In terms of asset management functions, Van Leeuwen said that PINA “seeks to fill the so-called ‘Advisory Gap’ by providing financial advice that is both accessible and personalized. By linking their financial accounts, including their bank accounts, e-wallets, government pension and investment accounts, users can see their net worth, monthly cash flow, and how their budget has fluctuated over the past few months. The app also allows them to book seats with certified financial advisors.
PINA plans to direct its funds towards user acquisition, as well as building its advisory and investment functions and value-added services such as access to career coaching and exclusive member events.
In a prepared statement, AC Ventures Founder and Managing Partner Adrian Lee said, “The growing proliferation of cashless transactions, along with an increase in the number of wealthy people in Indonesia, has opened up billions of dollars of new opportunities for wealth management platforms that offer a full package of services, including wealth management and investing. The PINA team has deep knowledge and connections to the financial services industry, making PINA one of the most promising companies in the field.”
Credit: techcrunch.com /