Midas, a fintech startup that brought retail investing to millions of people in Turkey, announced that it has raised $45 million in equity funding. The new funding round will enable Midas to expand and roll out three new products: cryptocurrency trading, mutual funds, and savings accounts.
This is the biggest ever Series A funding round for a Turkish fintech company. And it comes less than three years after Midas was launched.
This funding round was led by Portage, with participation from International Finance Corporation, 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 over two million users. Previously, users faced large transaction fees and high minimum balance requirements, sometimes of up to $25,000, to access US stocks. Through its app, Midas is the first company to offer fast, seamless access to Turkish and US equities with low commission fees.
Midas also invested heavily in education by producing easy-to-digest financial content for free. This includes 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.
This new funding round will enable Midas to grow its offering, including access to mutual funds, an interest-generating savings product, and cryptocurrency trading. Midas also expects to expand beyond Turkey for the next two to five years, with plans to target countries in emerging markets. Through its new products and expansion plans, the company will 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 funding comes amid a global stagnation in fintech investments in the last two years, indicating continued investor confidence in Midas’ strategy of transforming the market by prioritizing the customer experience above all and constantly improving its investment product’s usability and low cost.
This funding round will also help Midas double its headcount. The company currently has 210 people working from its office in Istanbul, which is already triple the number of employees in 2022.
KEY QUOTES:
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“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.”
“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.”
- Egem Eraslan, CEO and founder of Midas
“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.”
- Paul Desmarais III, Co-Founder of Portage and CEO and Chairman of Sagard
