Fintech startup Midas has raised $45m to enable retail investors in emerging markets to access crypto and mutual fund products. The $45 million fundraise was led by Portage and is one of Turkey’s largest ever Series A rounds.
Midas hit profitability last year and, with two million users since its 2021 launch, the company wants to expand into new markets. The new capital will allow Midas to expand and roll out three new products: cryptocurrency trading, mutual funds, and savings accounts.
Since its launch in 2021, Midas has opened up Turkey’s retail investment market to more than two million users. Previously, users faced onerous transaction fees and high minimum balance requirements, sometimes of up to $25,000, to access US stocks. Via its app, Midas offersoffer 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.
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 next two-to-five 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 aims to become a leading financial institution in the region.
Egem Eraslan, CEO and founder, 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.”
Paul Desmarais III, Co-Founder of Portage, 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.”
