Pintu Raises $6M Series A Funding - Crypto Exchange News

Cryptocurrency Investment Gains Traction in Indonesia

A growing number of retail investors in Indonesia are turning to cryptocurrency, mirroring trends observed in the stock market. Pintu, a platform specifically designed for novice cryptocurrency purchasers, has recently secured $6 million in Series A funding.

This funding round was spearheaded by Pantera Capital, Intudo Ventures, and Coinbase Ventures, with participation from several other prominent investors.

Regulatory Framework and Pintu's Establishment

Two years ago, the Indonesian Commodity Futures Trading Regulatory Agency (Bappepti) initiated the regulation of Bitcoin and other cryptoassets as commodities. This regulatory move facilitated the licensing of brokers such as Pintu.

Founded last year by Jeth Soetoyo, Pintu was created to simplify the process of buying Bitcoin, Ethereum, and other cryptocurrencies for first-time investors. The company holds licenses from both Bappebti and the Ministry of Communication and Informatics as a registered cryptoassets broker.

Increased Investment Appetite During the Pandemic

The COVID-19 pandemic triggered a surge in interest in capital investments, particularly among millennials seeking alternatives to traditional, low-yield savings accounts. This trend benefited investment applications like Ajaib, Bibit, and Pluang, all of which have recently received funding.

Alongside traditional investments, many new investors are also exploring the potential of cryptocurrencies.

Indonesia's Crypto Transaction Volume

According to Pintu’s internal data, Indonesia processed approximately $10 billion USD in cryptoasset transactions last year, with the majority originating from retail investors.

Demographics and Market Positioning

Andrew Adjiputro, Pintu’s chief operating officer, stated in an email to TechCrunch that many Indonesian retail traders view cryptocurrency as a distinct investment asset class. He also noted that the majority of these investors fall within the 20 to 35 age range.

However, the company is observing an increasing number of older investors entering the cryptocurrency market as its popularity expands.

“Our surveys indicate that crypto is now considered a top three asset class in Indonesia, competing with gold and mutual funds,” Adjiputro explained.

Competitive Landscape and Pintu's Differentiation

Other cryptocurrency exchanges operating in Indonesia include Indodax and Tokocrypto. Pintu distinguishes itself by focusing on the mass market, specifically targeting first-time crypto users.

The company’s core strengths lie in its mobile-first application, user-friendly interface, and comprehensive educational resources developed in-house.

“Investing and trading are relatively new concepts for most Indonesians, given historically low participation rates in these areas,” Adjiputro elaborated. “This presents an opportunity to educate Indonesians about investing and trading, and to facilitate their entry into various asset classes. There’s a significant demand for a simple, intuitive platform that provides guidance and education from the outset, covering both crypto and fundamental investment principles.”