- The $45 million fundraise was led by Portage and is one of Turkey’s largest ever Series A rounds
- New capital will help Midas roll out a host of new product lines including crypto trading, mutual funds, and a savings product, with plans to double its headcount to 400+, and expand into emerging markets
- Midas hit profitability last year and, with two million users since its 2021 launch, the company is on course to revolutionize Turkey’s investing market, and expand into new markets
ISTANBUL, April 22, 2024 /PRNewswire/ — Midas, the fintech startup that brought retail investing to millions of people in Turkey, today announced that it has raised $45 million in equity funding. The new capital will allow Midas to expand and roll out three new products: cryptocurrency trading, mutual funds, and savings accounts.
It is the biggest ever Series A fundraise by a Turkish fintech, and comes less than three years after Midas was launched. The raise was led by Portage, with participation from International Finance Corporation, and Spark Capital, Earlybird Digital East Fund, and Revo Capital doubling down on their previous investment in the company’s $11 million seed round in 2022.
Since Midas launched in 2021, it has opened up Turkey’s retail investment market to more than two million users. Previously, users faced onerous transaction fees and high minimum balance requirements, sometimes of up to $25,000, to access US stocks. Via its app, Midas is the first company to offer fast, seamless access to Turkish and US equities with low commission fees.
Midas has also invested heavily in educating the market by producing easy-to-digest financial content for free. These include real-time stock market data and news, detailed company profiles, in-depth documentaries, a daily podcast, and a weekly newsletter to help investors navigate the markets. In doing so, it pioneers Turkey’s most comprehensive localized financial content offerings for investors.
The new funding will allow Midas to grow its offering to include access to mutual funds, an interest-generating savings product, and cryptocurrency trading. In the next two-to-five years, Midas also projects that it will expand beyond Turkey, with plans to target countries in emerging markets. With its new products and expansion plans, the company will now move forward with its mission of changing Turkish people’s relationship with money – not just investing – and becoming a leading financial institution in the region.
The raise also comes amid a global stagnation in fintech investments in the last two years, indicating continued investor confidence in Midas’ strategy of disrupting the market by prioritising the customer experience above all, and constantly improving the usability and low cost of its investment product.
Egem Eraslan, CEO and founder of Midas, said: “We are delighted to announce our Series A fundraise, which is the biggest ever by a Turkish fintech. Just a few years ago, Turkey did not have a strong investing culture and the market was stagnant – but thanks to Midas, that is changing. We have already brought affordable, quick access to US and Turkish equities to millions of people in Turkey. This fundraise will allow us to expand our product suite further, with mutual funds, savings products, and cryptocurrency trading firmly in our sights. Longer term, we want to broaden our horizons and expand our geographic footprint beyond Turkey to become a prominent regional player.”
Paul Desmarais III, Co-Founder of Portage and CEO and Chairman of Sagard. “Midas is leading a wave of transformation within Turkey’s financial landscape. Globally, Portage invests in transformational financial technology and Midas is poised to lead that initiative in a region of early adopters. We are very pleased to participate in the development of Midas and to support this ambitious team in bringing financial inclusion and access to wealth-building tools to the Turkish people.”
The raise will also help Midas double its headcount. It currently has a team of 210 people working from its office in Istanbul, already triple the number of employees in 2022.
Eraslan continued: “We have a long-term view for this company, and short-term market conditions have not hindered that. The raise comes as a significant vote of confidence in our mission to transform investing in the region.”
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About Midas
Founded in 2020, Midas makes investing effortless for first-time investors in Turkey via its fast, easy-to-use digital stock brokerage app.
Those factors meant there was a gap in the market for an app that enabled people to easily invest in Turkish and US stocks, which Midas has filled. Midas offers low transaction fees for investments in US stocks, fractional investing, and free live market data. The Borsa Istanbul (Turkish stock market) product offers commission-free trading of Turkish stocks.
To date, Midas has more than two million total users, and that number is projected to increase to five million by the end of 2024. Last year alone, it saved $70m in commissions for its customers.