Pintu Secures $35M Funding Led by Lightspeed Venture Partners

Pintu Secures $35 Million Series A+ Funding

Indonesian cryptocurrency platform Pintu has recently finalized a $35 million Series A+ funding round, occurring just two months following its previous funding announcement.

Lightspeed Ventures spearheaded the new investment, with significant participation from existing investors including Alameda Ventures, Blockchain.com Ventures, Castle Island Ventures, Coinbase Ventures, Intudo Ventures, and Pantera Capital.

Recent Funding and Market Trends

Pintu’s prior funding, a $6 million Series A, was led by Pantera, Intudo, and Coinbase Ventures in late May. The company is experiencing rapid growth, mirroring a trend among Southeast Asian investment applications as retail investing gains traction.

Similar platforms like Bibit, Ajaib, and Syfe have also secured substantial follow-on funding rounds.

Strategic Rationale for Series A+

According to Andrew Adjiputro, Pintu’s COO, the decision to pursue a Series A+ round, rather than a Series A extension or Series B, stems from the company’s continued emphasis on product development and execution.

Adjiputro stated that the Coinbase IPO and the influx of new users presented an opportune moment to secure larger funding for accelerated growth and the launch of innovative products.

Plans for Growth and Expansion

Pintu intends to allocate the Series A+ funds towards “aggressive” recruitment across all departments and the introduction of new features and products.

During the first half of 2021, the platform witnessed a 3.5x increase in app downloads through organic channels, alongside a 4x growth in active traders.

Currently, Pintu facilitates trading in 16 cryptocurrencies, with plans to expand its offerings to include NFT tokens.

The Impact of Coinbase and Investor Education

The successful initial public offering of Coinbase in April is believed to have stimulated interest in cryptocurrency trading, particularly among novice investors.

Pintu prioritizes investor education, providing extensive resources on its platform to attract and inform a new generation of investors.

Growth of Retail Investment in Indonesia

Despite currently low rates of retail investment in Indonesia, there is a notable upward trend driven by a desire for portfolio diversification and asset growth during the pandemic.

For many users, Pintu serves as their initial foray into investing, surpassing traditional options like stocks.

A recent company survey revealed that cryptocurrency ranked third among preferred asset classes, following mutual funds and digital gold, and preceding stocks.

Crypto vs. Stocks in Indonesia

Data from the Indonesian Ministry of Trade corroborates this trend, indicating over 6.5 million crypto investors in Indonesia as of June 2021, significantly exceeding the 2.2 million public equity investors.

Pintu operates as a licensed crypto broker under the Indonesian Commodity Futures Trading Regulatory Agency (BAPPEBTI).

The platform’s low minimum investment requirement of 11,000 IDR (approximately 75 cents USD) enhances its appeal to new investors.

Accessibility and User Experience

Timothius Martin, Pintu’s CMO, highlighted the platform’s accessibility as a key factor in his own initial investment experience.

He emphasized the ease of both investing and withdrawing assets, noting a gap in the Indonesian market for user-friendly crypto investment options.

Focus on Education and Differentiation

Rather than immediately prompting investment, Pintu prioritizes providing educational materials to its users, including resources like Pintu Academy.

While primarily targeting millennials, the platform is also attracting older demographics interested in learning the fundamentals of crypto trading.

Adjiputro asserts that Pintu’s commitment to education distinguishes it from other Indonesian crypto platforms such as Indodax and Tokocrypto.

Upcoming Features and Coin Selection

The company is preparing to launch new features, including Pintu Earn, a crypto asset account offering interest on various cryptocurrencies, and e-wallet integration for streamlined deposits and withdrawals.

Pintu maintains a selective approach to coin listings, prioritizing those with high market capitalization, established track records, and robust liquidity, particularly to safeguard first-time investors.

Future Expansion Plans

Pintu’s immediate focus remains on expanding its presence within Indonesia before venturing into other Southeast Asian markets.

Lightspeed Ventures’ Perspective

Hemant Mohapatra, a partner at Lightspeed, stated, “Lightspeed has invested in over 17 crypto and blockchain companies globally including FTX, Blockchain.com, Offchain Labs and more. We believe crypto is at an inflection point to become an important asset class globally and will give rise to massive companies that will become regional leaders. Pintu has created the strongest market brand, best user experience and hands down one of the strongest teams we’ve ever come across in this market.”