Midas Investment Platform Eyes MENA Expansion With $45 Million Boost

Midas, a fintech company that grants millions of Turkish citizens access to investing markets, revealed last week that it secured $45 million in a Series A financing round. The round was spearheaded by Canada’s Portage.

The investment round also included contributions from Revo Capital, Earlybird Digital East Fund, Spark Capital, and International Finance Corporation, all of whom had previously funded the firm’s $11 million seed round in 2022.

Midas Wants To Introduce Digital Currency Trading

Established merely three years back, Midas has already garnered more than 2 million users in Turkey by providing affordable entry to Turkish and US equities via its mobile application. The firm has created its framework for execution, custody, and clearing. This allows it to offer a smooth user experience in a market where individual investment opportunities were previously restricted.

The Chief Executive Officer and founder of Midas, Egem Eraslan, stated that the company has already provided low-cost, fast access to Turkish and US stocks to many individuals in Turkey. He added that the investment will help them to broaden their product offering further.

Midas aims to use the new funding to enhance its product portfolio by introducing digital currency trading, savings accounts, and mutual funds. The firm is also considering expansion outside Turkey into the MENA area within the next few years.

The chairman and Chief Executive Officer of Sagard and the Co-Founder of Portage, Paul Desmarais, noted that Midas is driving a wave of innovation within Turkey’s financial market. He added that internationally, Portage invests in groundbreaking financial technology, and Midas is ready to spearhead that effort in a region of initial adopters.

Midas Intends To Use The Investment To Expand Its Customer Base

The $45 million funding is among the largest secured by a Turkish fintech company in recent years, second only to the $50 million secured by Param, a Fintech startup in 2022.

This comes after Midas achieved profitability in 2023 and unveiled intentions to increase its workforce to more than 400 employees and expand its customer base to 5 million by the close of 2024.

Midas is commonly dubbed the “Turkish Robinhood,” because of its investment strategy and commission-free model. However, there is a huge difference between the two companies.

With Robinhood’s managed assets surging by 59% to $119 billion in the previous year, investors perceive that Midas could replicate the achievements of its elder and more extensive counterpart.

Even though the financing round was significant, it wasn’t the largest to happen recently in Europe. Last week it was reported that the digital bank Monzo secured $400 million from Google’s independent expansion fund, CapitalG.