Midas, the fintech startup that offers retail investing 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 product classes: cryptocurrency trading, mutual funds, and savings accounts.
This marks the largest ever Series A fundraise by a Turkish fintech, and comes less than three years after the firm’s launch. The raise 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, the company has opened up Turkey’s retail investment market to more than two million users. Previously, investors faced onerous transaction fees and high minimum balance requirements, sometimes of up to $25,000, to access US stocks. Via its app, Midas states itself to be 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 upcoming 2-5 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.
According to Midas, this fundraising round will also help the company double its headcount. It currently has a team of 210 people working from its Istanbul office, already triple the number of employees in 2022.
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.”
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Paul Desmarais III, Co-Founder of Portage and CEO and Chairman of Sagard commented: “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.”
