Indonesian financial technology firm Fundtastic has acquired mutual fund portal Invisee for US$6.5 million, according to local English language daily Jakarta Post, quoting the company’s co-founder Franky Chandra.
Invisee was previously one of the distribution partners of Fundtastic, which is licensed by the Financial Services Authority to provide financial planning consultancy services.
The acquisition means mutual funds sold through Invisee can now be placed on Fundtastic’s online platform or mobile app, allowing the fintech firm to directly offer the products to its customers.
Mr. Chandra says his firm has been in talks with Invisee since December 2019 and only decided to purchase the company this month.
“We are working as two different companies that were both trying to make a profit. By merging our companies, we can improve profitability,” he says in the August 12 report.
Mr. Chandra, who posted news reports of the acquisition on his LinkedIn page, did not immediately respond to questions from Asia Asset Management (AAM).
According to a senior executive at a Malaysian fintech firm, Fundtastic will be able to significantly improve its margins by directly selling the funds offered by Invisee without going through a middleman.
“In the digital wealth advisory business, it is a volume game and even if you can save a few percentage points, it will have a significant impact to the margins,” he tells AAM, speaking on condition of anonymity.
Fundtastic had 92 billion rupiah ($6.28 million) of assets under management and 100,000 users as of end-June 2020.