May 25, 2022

GotTrade, an application that allows international users to access the US. Today, he raised $15.5 million in Series A funding, allowing him to buy fractional shares of stocks and ETFs. The round was led by Velocity Capital Fintech Ventures with participation from Mitsubishi UFJ Financial Group, Binext, Kibo Ventures, Pickus Capital and longtime investors LocalGlobe, Social Leverage and Raptor.

The company’s latest funding round was $7 million, which was announced in June 2021. The GotTrade app was launched a year ago after being approved by the Labuan Financial Services Authority of Malaysia and now has 500,000 users in over 140 countries. Marketing. It has brought in about $400 million so far, spreading over 5 million deals.

The startup was founded in 2019 by Rohit Mulani, Norman Vanto and David Grant. The app allows users to buy fractional shares of stocks traded on the NYSE and NASDAQ starting at $1.00. GotTrade does not charge any fees for its transactions. Instead, it makes money by charging a 0.5% to 1.2% exchange fee when users deposit money in their local currency, which is then converted into USD for trading.

The fees include direct deposit, which means that GotTrade users can start trading without first depositing funds into their accounts. GotTrade is also testing a new subscription tier called GotTrade Black which has premium features like candlestick charts, analyst ratings, price targets and risk measurements up to $2/month.

Part of the capital will be used to create localized versions of the app for more markets. Co-founder and CEO Rohit Mulani told gaming-updates that the startup is currently exploring all markets in Southeast Asia. This means launching the GotTrade app in local languages ​​along with the most commonly used cash deposit methods including local bank transfers and e-wallets.

One of GotTrade’s main markets is Indonesia, where GotTrade launched GotTrade Indonesia.

GotTrade is one of many investment apps in Indonesia that has raised funds over the past year. These include Pluang, Pintu, Bibit and Adjaib.

Asked how GotTrade Indonesia differs from investment apps that have or plan to add fractional trading features like Pluang, Mulaney said that GotTrade Indonesia’s focus is on high-priced notional value stocks like Tesla. , because fractional division works with 9 decimal places.

“Currently, other investment apps (like Pluang) have 1 decimal in fractional context. This means that investing in Amazon or Google on those platforms still costs the minimum of $333 and $285. It costs at least $1 on GotTrade Indonesia,” Mulaney said.

Another difference, he says, is that “unlike other investment applications that offer CFDs (Contracts for Difference), our products are fully backed by publicly traded shares.” Because Indonesian brokers are not allowed to offer foreign securities in Indonesia, but instead offer foreign securities derivatives, GotTrade has partnered with Valbury Asia Futures, Jakarta Futures Exchange, an Indonesian futures clearinghouse, all of which are controlled by Bappabati. Derivatives regulator launches GotTrade Indonesia.

This allows GotTrade Indonesia to offer fully supported derivatives to its users by providing access to the US stock market. Funds are sent to the futures clearing house, and trades are made through the Indonesian financial conglomerate Walbury Group and listed on the Jakarta Futures Exchange. Trades are then routed to Alpaca Securities LLC, a FINRA-approved US broker-dealer, and executed based on the best national bids and offers in accordance with US Securities and Exchange Commission rules.

This means that when a user places a trade on GotTrade Indonesia, it results in a contract between him and Valbury. The linked Walbury deal with Alpaca Securities creates a fully hedged position.

GotTrade Indonesia says it is the first platform in Indonesia to offer this kind of market access for US stocks, meaning users need to trade CFDs with a foreign stockbroker or locally while paying a hefty commission.

With the launch of GotTrade Indonesia, the company announced that it has added Andrew Hariono as a co-founder. Hariono is the owner of the Valbury Group.

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