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– Retail investment startup Midas raises $45 million to launch cryptocurrency products, mutual funds and savings accounts
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 financing. The new capital will allow Midas to expand and launch three new products: cryptocurrency trading, mutual funds, and savings accounts.
This is the largest Series A fundraising by a Turkish fintech and comes less than three years after the launch of Midas. The raise was led by Portage, with participation from International Finance Corporation, and Spark Capital, Earlybird Digital East Fund and Revo Capital doubled their previous investment in the company’s $11 million seed round in 2022.
Since its launch in 2021, Midas has opened Turkey’s retail investment market to more than two million users. Previously, users faced onerous transaction fees and high minimum balance requirements, sometimes as high as $25,000, to access US stocks. Through its app, Midas is the first company to offer fast and seamless access to Turkish and US stocks with low fees.
Midas has also invested heavily in educating the market by producing free, easy-to-digest financial content. These include real-time stock market news and data, in-depth 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 financing will allow Midas to expand its offering to include access to mutual funds, an interest-bearing savings product, and cryptocurrency trading. Over the next two to five years, Midas also projects it will expand beyond Turkey, with plans to target emerging market countries. With its new products and expansion plans, the company will now advance its mission to change the Turkish people’s relationship with money (not just investment) and become a leading financial institution in the region.
The increase also comes amid a global stagnation in fintech investments over the past two years, signaling continued investor confidence in Midas’ strategy to revolutionize the market by prioritizing customer experience above all else and constantly improving the usability and low cost of your investment product.
Egem Eraslan, CEO and founder of Midas, explained: “We are delighted to announce our Series A fundraising, which is the largest ever by a Turkish fintech. Just a few years ago, Turkey did not have a strong investment culture and the market was stagnant, but thanks to Midas, that is changing. We have already provided quick and affordable access to US and Turkish stocks to millions of people in Turkey. This fundraising will allow us to further expand our suite of products, with mutual funds, savings products and cryptocurrency trading is firmly in our sights. In the long term, we want to broaden our horizons and expand our geographical footprint beyond Turkey to become a prominent regional player.”
Paul Desmarais III, Co-Founder of Portage and CEO and Chairman of Sagard, noted: “Midas is leading a wave of transformation within Turkey’s financial landscape. Globally, Portage invests in transformative financial technology and Midas is poised to lead that initiative. in an early adopter region. We are very happy to participate in the development of Midas and support this ambitious team to bring financial inclusion and access to wealth creation tools to the Turkish people.”
The increase will also help Midas double its headcount. It currently has a team of 210 people working from its office in Istanbul, already tripling the number of employees in 2022.
Eraslan added: “We have a long-term vision for this company and short-term market conditions have not prevented this. The increase represents an important vote of confidence in our mission to transform investment in the region.”
ContactoBen Goldsmithben@goldsmithcomms.com 44(0)7788295321
About Midas
Founded in 2020, Midas makes it easy for first-time investors in Turkey to invest through its fast and easy-to-use digital stock brokerage application.
Those factors meant there was a gap in the market for an app that allowed people to easily invest in Turkish and US stocks, which Midas has filled. Midas offers low transaction fees for US stock investments, fractional investing, and free live market data. The Borsa Istanbul (Turkish stock market) product offers commission-free trading in Turkish stocks.
To date, Midas has more than two million total users, and that number is expected to increase to five million by the end of 2024. Last year alone, it saved $70 million in fees for its customers.
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