Midas Raises $45M for Türkiye Financial Services Expansion

Fintech start-up Midas, known for its efforts in democratizing retail investing in Türkiye, announced on Monday that it has successfully raised $45 million (TL 1.47 billion) in equity funding. This funding will enable the company to expand its range of services and introduce new products.

This fundraising effort is being hailed as the largest Series A fundraising by a Turkish fintech firm and the second-largest across sectors. Notably, this achievement comes less than three years after Midas was founded.

The funding round was led by Portage, with participation from other investors including the International Finance Corporation (IFC), Spark Capital, the Earlybird Digital East Fund, and Revo Capital. These investors have doubled down on their previous investment in Midas, having participated in the company's $11 million seed round in 2022.

Midas intends to utilize the new capital to expand its offerings and introduce three new products: cryptocurrency trading, mutual funds, and savings accounts.

Since its inception in 2021, Midas has attracted over 2 million users in Türkiye by eliminating transaction fees and minimum balance requirements for accessing U.S. stocks, which were previously barriers for retail investors.

Midas has also been proactive in promoting financial literacy by providing easily understandable financial content, including real-time stock market updates, company profiles, documentaries, podcasts, and newsletters.

The company's expansion plans include the introduction of mutual funds, interest-generating savings products, and cryptocurrency trading.

Looking ahead, Midas aims to expand beyond Türkiye's borders within the next two to five years, with plans to target emerging markets.

The successful fundraising effort by Midas comes amid a global slowdown in fintech investments, highlighting investors' confidence in the company's approach and commitment to enhancing its offerings.

In recognition of Midas's achievement, Nasdaq displayed a congratulatory message for the fintech firm on a screen at Times Square in New York.

Egem Eraslan, CEO and founder of Midas, expressed his enthusiasm for the fundraising, emphasizing the company's commitment to its long-term vision and its mission to revolutionize investing in the region.

Paul Desmarais III, co-founder of Portage and CEO and chairperson of Sagard, praised Midas's transformative impact on Türkiye's financial landscape.

The funding will also enable Midas to double its workforce, which currently consists of 210 employees based in Istanbul.

The investment's application and approval processes with the Capital Markets Board (SPK) and the Competition Board (RK) are ongoing, with announcements expected to be made upon completion.