Moduit Closes Pre-Series A Round of 65 Billion Rupiah, Ready to Expand "Wealth Management" Products

Startups fintech Moduit investments announced the acquisition of a $4,5 million (over 65 billion Rupiah) pre-series A round led by Singapore's Reciprocus Moduit Holding (RMH). RMH is a consortium consisting of Reciprocus Financial Services Pte Ltd, entrepreneurs insurtech Walter de Oude, and helicopter. In this round, PT Alto Network, a subsidiary of the Djarum Group, participated.

Moduit is the first portfolio of the RMH consortium with the ambition to grow the business fintech in Southeast Asia, especially in Indonesia.

This fundraising plan has actually been disclosed since October 2019 in last interview with DailySocial.id. However, with the right momentum in the midst of the pandemic, it was able to increase the company's optimism to pursue growth. It is planned that the series A raising will be held next year.

In an official statement, Moduit Founder & CEO Jeffrey Lomanto explained that his party will use the fresh funds to expand its platform to offer additional curated products from wealth management, other than mutual funds and bonds. Also, improve the Moduit Robo-Advisor feature, which provides algorithm-based automated financial planning services with little or no human involvement.

“We plan to attract more professionals to join us as financial planning partners at Moduit. We will offer them more opportunities and a better balance of life," he said, Wednesday (10/11).

Founder & Chairman of Reciprocus International Pte Ltd and CEO of Reciprocus Financial Services Pte Ltd (RFS) David J. Emery said that the pandemic is a double-edged sword. “Moduit has developed a digital platform that can help its Financial Planning Partners to open pintu important gateway to wealth for gen-Z and millennials," he said.

Singlife Founder Walter de Oude said, “Moduit is the perfect platform that combines technology with financial planning in Indonesia. Moduit has all the recipes for rapid growth and success.”

Jeffrey continued, throughout this year, without marketing support, Moduit's Assets Under Advisory (AUA) grew by more than 40% in line with the average investment value for B2C reaching $4600 or Rp66,7 million per client. Simultaneously, the number of Moduit Advisory Partners grew by 74%, these partners handling an average portfolio of $60.000 or IDR 870 million per client.

He targets that by 2022, the company will triple the number of Financial Planning Partners and push AUA up to seven times. “The entire Moduit team is very excited about this development. With such a huge opportunity in Indonesia, our ultimate goal going forward is to expand throughout Indonesia, and we also plan to pursue series A funding by the end of 2022," he explained.

Different approach

Moduit takes a different approach in marketing investment products. There are two target consumers, namely B2C to target retail investors, and B2B2C by targeting securities marketers who want to reach investors with large amounts.

This strategy was taken because the wealth management industry here is very fragmented. There are three main activities in it, educating clients by finding out their financial needs and what their cashflow is like. Not just doing KYC (Know Your Customer).

Then enter the second activity, namely financial planning to simulate the investment portfolio based on the data obtained during the first activity. Finally, go to the execution section to transact the activities in the second section.

"This last part requires an PI (Investment Advisor) license to administer, connect with custodians, KSEI (Indonesian Central Securities Depository) and the like. In Indonesia, wealth management startup players are very fragmented, if we want to end-to-end, "explained Moduit Founder & CEO Jeffry Lomanto to DailySocial.id in a previous interview.

Based on OJK statistics, the number of representatives of mutual fund selling agents (WAPERD) was monitored to increase to 24.351 WAPERDs as of January 2021, from the previous 24.972 agent representatives in 2017.

The B2B2C business is the biggest motorcycle in Moduit. Even so, Jeffrey still wants both businesses to grow because there is a combination of ticket size and number of tickets generated from each.