Digital investing startups are shaking up Indonesia

More: Xpeng has a new flying car and a Singapore-based crypto gets hacked [Read from your browser]( Daily Newsletter Next week's Live event exclusively by Tech in Asia: The F-Word: Is Funding really as simple as Series ABC? If y'all are planning to raise money to water hose that burn (for growth)... you gotta [RSVP here]( Hello {NAME} You can do this, Indonesia! Your economy is set to [experience a boom]( in this decade. While that’s good news, the country’s financial literacy and inclusion are still lagging behind its peers in Southeast Asia. According to the country’s Financial Services Authority (OJK), only 38% of the population were considered financially literate as of 2019. And that’s where fintech startups are stepping up. Today, we’ll look at, - [Digital investing assets in Indonesia]( - How India lost Chinese investors but gained interest from other countries - Other newsy highlights such as Xpeng’s new flying car and a cybersecurity breach at a Singapore-based cryptocurrency exchange PREMIUM SUMMARY With great numbers come great financial responsibility It looks like millennials in Indonesia still prefer to invest via traditional banks. But the rise of ecommerce and fintech companies are [providing more options]( for the internet generation. - All that glitters is gold: This precious metal is loved by me and you and everyone we know. And thanks to digitalization, investing in gold just takes a few clicks and as little as US$ 0.007. Many big-name tech companies in Indonesia are already providing this service: [Gojek, Bukalapak and Tokopedia](. - Lend me a dime: Peer-to-peer lending is hot in the country. Total lending has grown 153.2% year on year, reaching US$7.7 billion in June 2020. The amount of credit disbursed by P2P lenders is also expected to hit US$29 billion by 2023. - Making small bets: Mutual funds are the first step in investing for most beginners. But in 2019, less than 1% of Indonesia’s population had invested in such funds. Fintech players like Bareksa are tackling this: It teamed up with Bukalapak and Tokopedia to enable users to invest in a mutual fund with just US$0.70 on their smartphone. Read more: [Indonesia’s fintech startups are gaining momentum]( NEWS SPOTLIGHT India: Goodbye, China! Hello, everybody else! India’s tech companies are popular among Chinese investors: 18 out of 30 its homegrown unicorns are at least partly funded by Chinese VCs. But with souring political relations between the two countries, Indian startups are [looking elsewhere for new buddies](. - The tiny red dot: When food delivery unicorn Zomato failed to receive US$50 million from Jack Ma’s Ant Group, it turned to Singapore’s sovereign wealth fund Temasek instead and raised US$62 million. - Go west: US investors have been very active in India’s tech space since 2010, and their involvement will likely increase. Some companies have already whipped out their wallets: Google announced its US$10 billion India-focused fund in July, and Sequoia Capital recently launched a US$1.35 billion fund for the Indian and Southeast Asian markets. - More is needed: India will need a lot more funds than ever before, as the number of newly incorporated startups grew from 460 in the first half of 2019 to 551 this year. QUICK BITES 1️⃣ Xpeng unveils flying car After raising at least [US$1.5 billion]( in its grand trade debut last month, Chinese smart electric vehicle company Xpeng is said to be [developing]( a flying car. Adorably named Kiwigogo, the vehicle can carry two passengers and “fly” up to 25 meters.  2️⃣ Intruder alert: Cryptocurrency platform hacked Singapore-based KuCoin had a security breach on Saturday. The hacker stole [US$150 million]( worth tokens including Bitcoin assets and ERC-20-based tokens. Launched in 2017, the cryptocurrency exchange enables beginners to trade and invest in cryptocurrencies. In 2018, the company raised [US$20 million]( from investors like IDG Capital and Matrix Partners.  3️⃣ Tencent enters home fitness Fiture, a Chinese smart home fitness equipment startup, has recently raised [US$65 million]( in a series A round led by WeChat owner Tencent. This could potentially be the biggest series A round raised by a fitness tech startup globally.  4️⃣ New e-pharmacy contender in India Indian ecommerce player Flipkart has also [entered]( the e-pharmacy space, following in the footsteps of fellow heavyweights Reliance and Amazon India. It has partnered with e-pharmacy 1MG to enable users to order prescription medicines as well as book doctor consultations and lab tests within the Flipkart app.  5️⃣ Same apps, different names Earlier this year, India banned more than 100 Chinese apps, citing security concerns. In the last few months, new Chinese apps have flooded Indian app stores, some of which include [rebranded versions]( of those prohibited apps. For example, Kwai, the video-sharing app of Tencent-backed Kuaishou, was banned in June. It recently rolled out a similar app called Snack Video. SPONSORED Yo, thinking of starting an online business? Then you’ve got to build a website that converts: An all-in-one platform for your business needs, awesome SEO, and most importantly, effortless payment for the customers. If you haven’t heard of it yet, BigCommerce could just be for you. [Sign up]( for a trial today and get your first three months free. FOR OUR COMMUNITY A fintech startup’s huge growth, huge losses Prominent fintech startup Nium was growing fast on some counts. In 2018, the Singapore-based firm handled up to US$1.5 billion in transactions. Last year, it hit US$5 billion, and that number is expected to triple this year. While Nium had managed to triple its revenue to US$7.3 million in 2019, this was outweighed by its ballooning expenses. We’ve unlocked this [premium article]( for you to read in full this week. EVENTS HAPPENING - Tech in Asia Virtual Conference from October 19 to 22. Our biggest annual event has everything you need to prepare for Southeast Asia’s golden age: expert panels given by founders, decision-makers, and investors, startup-investor speed dating, and networking sessions to connect with those who matter. [RSVP here]( or you can [join the event]( for free if you’re already a Core or Live subscriber. - ** Live Event ** The F-Word: Is Funding really as simple as Series ABC? on Wednesday, September 30 This is part of our No BS Series, where Tech in Asia plays the devil's advocate along with Adrian Lee from TribeCar and Aaron Tan from Carro. In this unscripted panel, we'll have a candid discussion on the impact of funding - a great thought starter if you're at the crossroads of funding vs. no funding. Core or Live subscribers can [attend at no additional charge](. - Tech in Asia x Surge: Startup Arena Pitch Battle Semifinals [Indonesia edition]( September 29 [Other Southeast Asia countries edition]( October 1 - Day 1 in the Cloud: Getting Started with AWS on Thursday, October 15 How important is having a solid technology infrastructure to scale your startup? Hear from startups who have been there, done that. [RSVP now]( WHO'S HIRING - [Sales and Partnerships Manager]( at SHAREit (Kuala Lumpur, Malaysia) - [Finance Executive]( at theAsianparent (Manila, Philippines) - [Senior UX Researcher]( at Hangry (Jakarta, Indonesia) Don’t leave your co-workers behind! Share this with them so that they can keep up with what’s going on in the region’s tech scene. Feel free to [drop us a feedback]( if our newsletter today got you feeling smarter (or if it didn’t). Today’s edition was written by Betty Chum, with contributions from Susi Susanti. It was edited by Eileen C. Ang. 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