Baraka, Middle East’s leading platform for commission-free investing, announced raising $20 million Series A funding from a clutch of investors led by Valar Ventures.
For Valar Ventures, a venture capital firm backed by renowned entrepreneur, Peter Thiel, baraka marks its first investment in the region.
Launched in 2021, baraka is a retail stock trading venture, providing access to commission free investing and access to over 6,000 US stocks and exchange traded funds (ETFs) to Middle East investors.
The company said it would deploy the fresh capital infusion to double down on its presence across the GCC and Egypt, and drive customer acquisition.
The company will also use part of the investments for technological up-gradation to evolve its app with new services anticipated to launch over the next 12 months including access to features like dividend reinvestment plans, extended hours trading and much more.
“By empowering the next generation of investors in our region with low-cost and comprehensive investment choices, we remain committed to enabling financial inclusion for millions of investors across MENA,” Feras Jalbout, founder and CEO of Baraka, said.
“We are excited to have Valar Ventures and Knollwood join us in transforming how users here save, invest and grow their money for the future,” he said.
As part of its growth plans, baraka intends to create further access to regional economies where it aims to secure licensing at some point in the future.
The company has committed the majority of this fund raise to new markets and create more access to local stock exchanges for regional investors.
Starting from $1, investors on baraka can build diversified portfolios and long-term wealth by benefiting from global equity markets to achieve financial independence.
Investment platforms continue to be a preferred choice for regional investors, as they consider a shift away from traditional savings options such as bank deposits and real estate.
In a move to democratise access to burgeoning regional equity markets such as Tadawul, and attract global investors to the Middle East, baraka is also working with local stock exchanges and regulators to enable access to local market trading on its app.
As the region’s leading stock exchange, Tadawul raised $4.7bn through 27 new listings in H1 2022 with a healthy pipeline of companies looking to list over the coming months.
Baraka will also introduce its highly successful Arabic content to newly licensed markets to drive financial inclusion.
The equity retailer is a Y Combinator-backed company and is also a part of Abu Dhabi’s global tech ecosystem, Hub 71.
Its investors include leading regional and global VCs such as Class 5 Global, Global Founders Capital, and Venture Souq. Valar ventures has previously backed global fintech unicorns Wise, N26 and BitPanda amongst others.
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