Jitta, a Bangkok-based fintech startup, has announced a $ 6.5 million Series A round as it prepares to set up an investment fund for consumers It was one of the largest series A in Thailand for some time and was headed by Beacon Venture Capital the 30 million dollar fund of the Thai Kasikorn Bank. Beacon absorbed the majority of the capital, but an existing angel investor whose identity was not disclosed also participated. Kasikorn and Jitta are not actively working together at this time, but there is obviously the potential to do so in the future.
Founded in 2014, Jitta has developed a proprietary algorithm that enables it to identify investment opportunities across a range of stock markets including the US, Thailand and other parts of Asia. The company offered a Freemium Intelligence product that allowed professional or at least serious investors to use their technology to find undervalued stocks or investments that are growth-oriented.
To do this, she uses an algorithm that analyzes a number of factors, including yield reports and business analytics, to rank how undervalued a stock is. Human analysts check the computer-generated result for anomalies or outliers. The company is anchored to Warren Buffett's thesis "Wonderful Company at a Fair Price".
The referral engine, which is reinforced by intelligence reports written by internal analysts, has helped Jitta become a central base for paying users in Thailand. Singapore and the US, CEO and co-founder Trawut Luangsomboon, told TechCrunch in an interview that it is difficult to ask paying users outside of reputable dealers. Confidence in the company's performance ̵
The idea behind the fund – Jitta Wealth – is to offer a passive investment option to users who do not have the time or the confidence to invest themselves. Instead, they simply invest money in Jitta Wealth and let the company worry about making money. Pricing from Jitta means there are incentives to do just that. Clients will be charged a 0.5 percent administration fee, and Jitta will cut earnings by 10 percent at the end of the year.
These fees are lower than most of the funds and are based on success, so the company's trust its algorithm and expertise. The fund will offer exposure to stocks in the US, Thailand and the Vietnam Border Market, which together represent a different level of risk and return, said Jitta CEO.
Jitta awaits SEC approval to start service, but Luangsomboon is confident Go live in Q2. He already has a waiting list of around 20,000 people.
The company is currently in Thailand, but its stock analysis product – which includes 16 countries – is likely to expand into new markets with India this year and Singapore on the horizon. Luangsomboon told TechCrunch that the enhancements will be conducted in collaboration with local partners in both countries. Later, the company will seek to develop foreign funds as soon as it has the impression that it has built a local reputation among trading professionals and has proven its technology. That should be something close to one to two years.
Apart from international expansion, Jitta plans to use his new capital to increase the number of employees to 25. In particular, she is looking for engineers who refine their algorithms and techniques as well as business development and sales.