Information on the Target

PINA is an innovative personal finance application based in Indonesia, designed to help users manage and grow their wealth. Founded in 2021 by ex-Grab executive Daniel van Leeuwen and seasoned financial services expert Christian Hermawan, PINA provides automated money management and investing solutions through a single easy-to-use app. The platform empowers Indonesians to achieve financial independence by simplifying complex financial decisions and making advanced wealth management tools accessible to all, not just high-net-worth individuals.

In collaboration with Trust Sekuritas Bank Negara Indonesia and other significant asset management firms, PINA operates under the oversight of the Indonesian Financial Services Authority (Otoritas Jasa Keuangan - OJK). The app is not only aimed at providing investment opportunities but also focuses on enhancing financial literacy among its users.

Industry Overview in Indonesia

Indonesia, with a population exceeding 270 million, presents a vast market for financial services. Currently, less than 2.0% of the population actively invests in the stock market. However, there has been a notable rise in stock trading applications, reflecting changing attitudes towards investment and attracting foreign investments from reputable firms, including Ribbit Capital and Tencent. This evolving landscape indicates a gradual shift towards broader participation in financial markets.

The value of Indonesia's retail savings and investments market has surged, surpassing $400 billion. There was an impressive 60% increase in trading accounts in the first half of 2021 compared to the previous year, with a substantial portion of these accounts opened by individuals under 40. This demographic shift highlights a growing interest in personal finance and investments among younger Indonesians.

The digital economy in Indonesia has been growing significantly, even during the disruptions caused by the COVID-19 pandemic. Consumers and SMEs are increasingly adopting digital financial services, which positions platforms like PINA favorably in meeting the rising demand for user-friendly, accessible financial tools.

PINA distinguishes itself by addressing the issues of low retail investor participation in Indonesia. The app provides not just investment opportunities but also essential education and resources aimed at enhancing financial wellness and literacy among its users.

The Rationale Behind the Deal

The investment from 1982 Ventures, in conjunction with other notable backers like iSeed Asia and PT Prasetia Dwidharma, aims to accelerate PINA's product development and market growth ahead of its launch set for November 2021. The funds will facilitate PINA's mission to transform personal finance for the masses by enabling easier access to wealth creation tools and services.

Investment in PINA is a strategic move to capitalize on the burgeoning growth of the digital financial services market in Indonesia, where there is an increasing necessity for platforms that bridge the financial literacy gap while providing robust investment solutions.

Information About the Investor

1982 Ventures is a Singapore-based venture capital firm specialized in fintech investments across Southeast Asia. It is recognized as a pioneer seed fund in the region, focusing on emerging financial technologies that aim to transform the financial services landscape. 1982 Ventures has developed a strong portfolio of investments in innovative companies and offers extensive support to help them accelerate growth and scale effectively.

Herston Powers, the Managing Partner of 1982 Ventures, emphasizes a commitment to empowering individuals through transformative financial services. The firm is dedicated to fostering startups like PINA that demonstrate a holistic approach to finance, emphasizing accessibility and inclusivity in wealth management.

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PINA presents a compelling investment opportunity as it aligns with global trends towards increasing financial inclusivity and digital finance adoption. By targeting a largely untapped market of retail investors in Indonesia, PINA has the potential to capitalize on a growing demographic that is eager for accessible financial solutions.

The management team's strong background in technology and finance further enhances PINA's prospects for success. Their commitment to user empowerment, along with a focus on financial education, positions PINA as a leader in an emerging sector that is expected to continue growing.

Moreover, the ongoing digital transformation in Indonesia's economy suggests a favorable environment for fintech companies. PINA's comprehensive strategy to deliver product diversity and financial literacy is not only timely but necessary as traditional barriers to investment are dismantled.

In summary, PINA's approach to simplifying investment for the masses and catering to Indonesia's millennial demographic positions it strongly for future growth, making it a potentially lucrative investment for 1982 Ventures and its co-investors.

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