GORO Obtains Pre-Initial Funding Worth IDR 15,2 Billion Led Iteratively

Platform marketplace property investment GORO secured $1 million (over Rp.15,2 billion) in pre-funding led by Iterative. This round was also supported by a number of investors, including XA Network, StashAway, and Mike Broomell (CEO of Colliers International Indonesia).

Through this funding, GORO plans to increase the size of its team to strengthen its user acquisition strategy. The claim is that since it was officially launched in early 2023, GORO has experienced growth of 15% per week.

"Anyone can invest in property, but is hindered by financial factors and complex procedures. GORO strives to overcome these challenges, and enables anyone, anywhere they have yield higher than its property portfolio," said GORO Co-Founder and CEO Robert Hoving in an official statement.

GORO is a platform marketplace which allows users to invest in property in denominations starting from IDR 10.000. The value of the property will be broken down and converted into tokens. Owned property tokens can be sold directly without complex processes at any time.

Meanwhile, users can achieve returns from monthly rental income and capital appreciation on the sale of property. This model is said to enable users to build a diverse and profitable property portfolio.

For example, quoted from the official website, if a user buys 1% of the token amount of a property, the user is entitled to 1% of the benefits or profits generated from the property, including rental income or increase in property value (capital gain).

Iterative General Partner Brian Ma, as well as Proptech Co-Founder unicorn AS Divvy Homes said they were excited to be part of GORO's journey. "Robert and Andryan have an outstanding understanding of the Indonesian property market. We look forward to working with them to democratize property ownership and invest in investors in Southeast Asia," he added.

Enter the secondary market

Hoving continued, GORO will enter the secondary property market to allow further liquidity for users. Currently, GORO serves users in more than 20 countries. "We will later expand to other cities in Jakarta and Bali, as well asset classes other."

GORO stands for Gotong Royong, reflecting the company's commitment to helping millions of people invest in property. GORO said that its current portfolio has generated 11% of the yield on rental income to investors.

His party assesses that currently the property sector is still attractive to investors because the risk is lower than investing in the more volatile capital market. based on data Indonesian Central Securities Depository (KSEI), a total of 10,3 million capital market investors were recorded, of which 58,7% came from people under the age of 30. This figure indicates that the millennial and Z generations, which dominate the capital market, are actively looking for other investment opportunities.

On the other hand, the property sector is considered illiquid because the buying and selling process is very complex and takes a long time. Property prices are also high value. Amidst the macroeconomic and inflationary situation, property is also mentioned as one of the assets that can offer stable returns to users.

In Indonesia, there is a lot of digitization of services in the property sector. No longer focused on the realm property listings, such as Lamudi, but also into other areas that are still relevant to property transactions and development. For example, IDEAL digitizing the mortgage application process and Cabin which offers a solution to simplify the building construction process.