Midas, a Turkish fintech startup focused on retail investing, announced a $45 million Series A fundraise, the largest ever for a Turkish fintech company.
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.
In a related news, we recently reported about Danish fintech, Flatpay which secired €45M to simplify payments for merchants.
What will the funds be used for?
Midas is leveraging its $45 million funding to expand its offerings beyond stock trading. This includes launching mutual funds for diversified investments, an interest-bearing savings account, and cryptocurrency trading.
The company also has its sights set on international expansion within the next few years, targeting emerging markets with similar opportunities for growth. These new products and global ambitions position Midas to not only revolutionise how Turks invest, but also to become a leading financial institution in the region.
Midas’ story
Founded in 2021, Midas has grown rapidly, attracting over two million users to its platform. The company credits its success to offering low-cost access to US and Turkish equities through its user-friendly app, a stark contrast to the high fees and minimum balances previously prevalent in the Turkish market.
Midas has also prioritised financial education, providing users with free resources like real-time market data, educational content, and podcasts. The new funding will allow Midas to further expand its offerings, including:
- Mutual funds: Providing users with access to diversified investment options.
- Savings accounts: Offering an interest-bearing product for users to park their funds.
- Cryptocurrency trading: Capitalising on the growing interest in digital assets.
What are the company’s growth plans
Beyond product diversification, Midas plans to double its current workforce and enter new markets in the next two-to-five years. This international expansion will target emerging markets with similar untapped potential for retail investors.
The funding round comes at a time of global decline in fintech investments. However, investors remain confident in Midas’ approach, which prioritises user experience and affordability.
What CEO and Midas’ investor say about the startup
Egem Eraslan, CEO and founder of Midas, highlighted the company’s role in transforming Turkey’s investment landscape: “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… 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, emphasised Midas’ potential for regional impact: “Midas is leading a wave of transformation within Turkey’s financial landscape… 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.”
What do we think of the startup
Midas’ significant funding and ambitious plans position the company to play a major role in reshaping the financial landscape in Turkey and potentially beyond. The company’s focus on affordability, user education, and product diversification will be key factors to watch in its future development.
