While many of Indonesia’s investment apps are focused on hooking first-time investors with low fees and starting deposits, PINA is targeting 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 country marketing head of Grab Indonesia. He is joined by technical co-founder Fajar Kuntoro, who was previously head of tech and engineering at Indonesian digital agency Mirum, Christian Hermawan, founder of Trust Securities and Hendry Chou, previously product design lead at edtech startup Zenius.
Van Leeuwen told TechCrunch that PINA was created because of the founders’ own challenges with personal finance. As a result, they wanted to make sure that all Indonesians have access to financial advice, not just people who are able to afford the fees and minimums charged by personal wealth advisors.
He said that Indonesian’s middle- and upper-class now includes 52 million people, and PINA was created to give them access to investment services without high minimums and fees as they invest for goals including buying a home, retirement and their children’s education.
“Our firsthand 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 large financial service brands on how to digitize and transform their businesses. It opened our eyes to the problems and opportunities in making wealth management accessible but also frustrating when we saw our clients’ inability to bring viable products to market due to their dated infrastructure and business models.”
Van Leeuwen said current solutions are great for first-time and new investors by charging low minimums, but PINA differentiates with its focus on integrating planning, money management and planning in one platform. “By bringing everything together in one platform, we aim to provide an experience they could never replicate with a human advisor or with a finance folder on their phone full of point solution apps,” he said.
Using PINA’s money management tools and advisors is free, and they monetize by charging when customers make an investment through the platform. Features include automatically-managed portfolios, and investing that needs more involvement from users. PINA also has customized financial advice, automated money management and investing tools in its apps.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 determining a user’s investment goals, time horizon, risk tolerance and priorities. Then it invests in a portfolio of low-cost mutual funds. Van Leeuwen said its software automatically rebalances investments, selling ones that rise above users’ target allocation and buying more of ones that fall below it. This is done when users fund their portfolios or when portfolio drift reaches 5%.
As for its wealth management features, Van Leeuwen said PINA “aims to bridge the so-called ‘advice gap’” by providing financial advice that is both affordable and personalized. By linking their financial accounts, including their bank accounts, e-wallets, state pension and investment accounts, users are able to 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 a slot with a certified financial advisors.
PINA plans to use its funding on user acquisition and by building out its advisory and investment features and complementary services like access to career coaching and exclusive member events.
In a prepped statement, AC Ventures founder and managing partner Adrian Li said, “The rising adoption of non-cash transactions along with the increase in mass affluent individuals in Indonesia has enabled new billion-dollar opportunities to emerge for wealth management platforms that offer a full stack of services including money management and investing. The team at PINA brings in-depth knowledge and connection with the financial services industry—making PINA one of the most promising companies in the field.”