Introduction: $20 Million in New Funding Round for Baraka
Fintech firm Baraka has excelled by raising 20 million USD in a new round of funding. The company plans to use the money to expand its operations into new markets and improve its services. The latest investment round was done under the guidance of Valar Ventures. Knollwood also participated in the round. Baraka’s platform offers access to more than 6,000 securities listed in the US with no minimum investment.
How Will the Funds Be Used?
The company plans to expand in Egypt as well as the GCC and use the new money to gain more customers. During the course of the next year, it plans to launch new services like reinvestment plans for dividends, extended trading hours, and more. The company will also invest in its app and technology.
Baraka is a retail stock trading company that gives Middle Eastern investors access to over 6,000 US stocks and ETFs without fees. This company is backed by Y-Combinator in Abu Dhabi’s Hub 71 tech ecosystem. Its investors include Class 5 Global, Global Founders Capital, and Venture Souq, all leading regional and global VCs. Valar Ventures has backed Wise, N26, and BitPanda.
At Baraka, users can register their shares and exchange-traded funds in their names for safety. The Securities Investor Protection Corp. pays up to $500,000 in dividends to brokerage accounts, so the company follows best practices since the Dubai Financial Services Authority regulates it.
What is Its Context in The UAE Economy?
Baraka’s CEO, Feras Jalbout reported that thousands of people have registered in the past year. They will continue providing millions of MENA investors access to the financial system by offering low-cost investment options. The company is excited about the fact that Valar Ventures as well as Knollwood have joined them in this effort to change how users will invest, grow and save money.
The Aramco listing on Tadawul sends a solid message to global investors. The Saudi economy is snowballing, with an expected growth of 8% this year. Non-oil activities are expected to grow by 5.9%. This gives investors confidence in the largest GCC economy.
The Saudi fintech stock market is rapidly growing and attracting attention from investors worldwide. This makes it an excellent place to invest money, and with access to local markets like Tadawul, investors can get the most out of their investments. Local markets have a lot of growth potential, and connecting investors from around the region with opportunities here will help to grow the Saudi economy.
The CEO said that more Saudi Arabian companies are going public, boosting growth and profits. He used Tadawul as an example and said that the Saudi stock exchange raised $4.7 billion through 27 new listings in the first half of 2022. He also noted that many companies want to list in the coming months, so the pipeline is healthy. Jalbout believes that investing in stocks could boost the economy.
Why does Baraka Continue To Be Attractive?
Baraka continues to attract global fintech talent and hire locals for critical positions. They have raised $25 million to invest in new MENA markets. The company wants to make it easier to do business in regional economies, where they hope to get licences. Regional investors now have easier access to local stock exchanges, and most of the raised money goes toward new markets.
Baraka allows users to create a diverse portfolio and wealth by investing in the equity markets across the globe starting with a small amount of money ($1). This helps them financially, and Baraka’s goal of bringing more people into the financial system is backed by a promise to improve financial literacy.
Baraka is coordinating with local exchanges to make app trading on local markets available to more people. This move is meant to increase access to regional stock markets like Tadawul in order to bring more investors to this region. The company wants to bring its popular content to promote financial inclusion, one of Saudi Arabia’s Vision 2030 goals.
The number of Middle East IPOs increased significantly in 2022, with a nearly 300 percent increase from the previous year. This was primarily due to the increasing role of retail investors in the region, who helped to grow assets under management by 16 percent to $1.2 trillion. This was made possible by platforms like Baraka, which helped to make investing more straightforward and accessible. Jalbout predicts that Baraka will continue to grow and help regional growth markets once Baraka is licensed in other markets.
Valar Ventures’ Baraka App is consumer-friendly. It helps users make independent investment decisions by providing them with the daily financial news in English and Arabic. Valar Ventures’ Andrew McCormack says they’re proud to back Baraka’s world-class team with their first Middle East investment. The region’s new FinTech ecosystem has a lot of potential, and Baraka’s early signs of success are very encouraging. They can’t wait to work closely with the company as it starts a new growth phase in the region.
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