Midas, a fintech startup that allows millions of Turks to access investing markets, announced today (Monday) that it has raised $45 million in a Series A funding round led by Canada's Portage.
The round also saw participation from International Finance Corporation, Spark Capital, Earlybird Digital East Fund, and Revo Capital, who had previously invested in the company's $11 million seed round in 2022.
Midas Raises $45 Million to Expand Retail Investing in Turkey and Beyond
Founded just three years ago, Midas has already amassed over 2 million users in Turkey by offering low-cost access to US and Turkish equities through its mobile app. The company has built its infrastructure for clearing, custody, and execution , enabling it to provide a seamless user experience in a market where retail investing was previously limited.
“We have already brought affordable, quick access to US and Turkish equities to millions of people in Turkey,” said Egem Eraslan, the CEO and Founder of Midas. “This fundraise will allow us to expand our product suite further.”
Midas plans to use the fresh funding to expand its product suite by launching cryptocurrency trading, mutual funds, and savings accounts. The company is also eyeing expansion beyond Turkey into the MENA region in the next 2-5 years.
“Midas is leading a wave of transformation within Turkey’s financial landscape,” Paul Desmarais III, the Co-Founder of Portage and the CEO and Chairman of Sagard, said. “Globally, Portage invests in transformational financial technology, and Midas is poised to lead that initiative in a region of early adopters.”
The $45 million Series A is one of the largest raised by a Turkish fintech firm recently, just behind the $50 million raised by embedded finance startup Param in 2022. It follows Midas when it hit profitability last year and announced plans to double its headcount to over 400 employees and grow its user base to 5 million by the end of 2024.
Due to its investment approach and commission-free nature, Midas is often called the "Turkish Robinhood." Although there is a significant size difference between the two businesses, with Robinhood's assets under management growing 59% to $119 billion over the last year, investors believe that Midas has the potential to follow in the footsteps of its older and larger counterpart.
Although the funding round was substantial, it certainly wasn't the largest to occur recently in Europe. As Finance Magnates reported last week, the digital bank Monzo raised $400 million from CapitalG, Google’s independent growth fund. A month earlier, Finom, a payment service provider for small businesses, secured $50 million in a Series B funding round co-led by existing investor General Catalyst and new investor Northzone.
