Charting the growth of ID’s stock trading apps

The Top Up is Tech in Asia’s free newsletter that breaks down the biggest stories and trends in fintech. [Read from your browser]( The Top Up 💵 Welcome to The Top Up! Delivered every Wednesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. If you’re not a subscriber, get access by [registering here](. Written by Samreen Ahmad Fintech Journalist Hello {NAME} In Bahasa Indonesian, the word ajaib means magical or miraculous. That may be why an Indonesian startup by the same name has achieved great feats in a short span of time. Stock trading startup Ajaib became the country's latest unicorn -- within just 2.5 years -- making it the second fastest to achieve the milestone after payments platform Ovo. The venture capital world expects Ajaib to become as big as US-based Robinhood, one of the pioneers of online stock trading. As Indonesia wakes up to the new hobby of stock trading via apps, several others apart from Ajaib have joined the rush to grab a piece of the flourishing market. These include names such as Stockbit and Pluang, as well as Indonesia’s major banks and asset managers that offer apps alongside their in-house services. While it’s worth noting that Indonesia’s 2.7 million stock investors make up only about 1% of the country’s population, the growing interest from the younger generation, especially millennials and Gen Z, is making it a hot industry. In today’s big story, my colleague Jofie Yordan dives deep into the bullish world of Indonesia’s stock trading sector. Read on to know more. -- Samreen THE BIG STORY [Ajaib, Stockbit drive Indonesia's stock-trading boom]( Image credit: Timmy Loen Ajaib, for one, became a unicorn in just 2.5 years. But rivals - including more diversified newcomers - are reaching for a slice of the pie. THE HOT TAKE  Investor interest in Philippine fintech heats up Here’s what happened: - Singapore-headquartered Tonik, a neobank operating in the Philippines, raised US$131 million in a series B round - Japanese megabank Mizuho led the round - Tonik is one of six applicants that was granted a digital bank license in the Philippines Here’s what it means: Fintech investors in Southeast Asia look to Indonesia as a potential gold mine. The problem is that the space is getting crowded - there are at least 14 digital banks either in operation or awaiting a license to operate. The market is big enough to accommodate several players, but competition is likely to be intense. Investors who cast their eyes across the sea will find that the Philippines, another Southeast Asian archipelago, has many of the same qualities that make Indonesia such an attractive market for fintech companies. See also: [Banking on a digital remedy in the Philippines]( Both countries have large populations, many of whom remain unbanked or underbanked, with similar income levels, and room for greater urbanization that will drive demand for financial services. Image credit: Timmy Loen The digital banking opportunity in the Philippines may actually be superior to Indonesia because the country’s central bank, Bangko Sentral ng Pilipinas, has [capped the number of digibank licenses to six]( and will keep it there for now. For companies like Tonik who have received a license, this gives them an advantage compared to financial service operators in Indonesia, where there is no such cap. These strong macro tailwinds have become apparent in Tonik’s US$131 million round, which is large by Southeast Asian standards especially for a company still at an early stage of fundraising. The investment is also a vote of confidence in Tonik’s CEO and founder, Greg Krasnov, who has experience with fintech in emerging markets. Notably, he founded Platinum Bank in Ukraine, which he led to an exit in 2014 for US$150 million, according to his [LinkedIn profile](. But in 2017, Platinum Bank’s fortunes took a turn for the worse - it was [declared insolvent]( by the National Bank of Ukraine and shut its doors that year. We can assume that this was not an issue for investors in Tonik, who include big names like Sequoia and Point72, as well as Mizuho. Tonik, which in December [announced]( that it had attracted US$100 million in consumer deposits within eight months of its launch, will be competing against digital banks backed by some of the biggest names in the Philippines, including the Aboitiz and Gokongwei families and telecom giant PLDT. How will Tonik, which doesn’t seem to have the same level of local backing, navigate a path forward? What unique advantages does it bring to the table? Will it aim to attract customers who are interested in higher-margin products like insurance and investments? These are some of the questions that need to be answered. -- [Simon]( NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the fintech scene [here](.  1️⃣ [Exclusive: Bukalapak co-founders back B2B fintech startup amid funding spree]( The investment in Monit marks Init 6’s third funding this year, following a quietly prolific 2021 for the Indonesia-based VC firm.  2️⃣ [YC-backed fintech unicorn enters SEA]( Razorpay has acquired a majority stake in Curlec, a Malaysian fintech firm, for an undisclosed amount.  Razorpay founders Harshil Mathur and Shashank Kumar / Image credit: Razorpay  3️⃣ [This fintech firm’s fight with its founder may end in a courtroom]( After alleged boardroom battles and claims of fraud, BharatPe's board and its co-founder Ashneer Grover could be embroiled in a legal tussle.  4️⃣ [Blockchain deals boost SG fintech funding to highest in 5 years: report]( Fintech funding in Singapore reached nearly US$4 billion in 2021 as investments in the crypto and blockchain space continued to rise, noted a KPMG report. FYI 1️⃣ [Why Vietnam’s fintech battleground is shifting gear]( More than half a billion dollars was invested into the country’s fintech sector in 2021. That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. In the meantime, if you have any feedback or ideas, feel free to get in touch with Terence, our editor-in-chief, at terence@techinasia.com. See you next week! P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. 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