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A commission-free investment platform based in the Middle East It raised $20 million in Series A funding led by Valar Ventures. This is Peter Thiel’s Valar venture’s first investment in the Middle East. The funding also saw participation from Knollwood.
According to a company release, the startup aims to allocate most of its funding to regional licensing and expansion. It also introduces new features for dividend reinvestment plans and extended trading, helping users save, invest and grow their money.
Baraka is a Y Combinator-backed company and part of Abu Dhabi’s global tech ecosystem, Hub 71. Barcaca’s investors include regional and global VCs such as Part 5 Global, Global Founders Capital and Venture Shop. Valar Ventures has previously backed global fintech unicorns Wiz, N26 and Bitpanda among others.
Feras Jalbout, Founder and CEO of Baraka, said, “Tens of thousands of users have signed up for Baraka within a year of our launch. By empowering investors in our region with low-cost and comprehensive investment options, we are committed to enabling financial inclusion for millions of investors in MENA. We are excited to have Valar Ventures and Knollwood here to help users save, invest and grow their money for the future.
Baraka will continue to attract international fintech talent to the region, while recruiting locally for key positions in the department. With $25 million raised so far, the company will also explore new markets for expansion in MENA.
Andrew McCormack, General Partner at Vallar Ventures, commented: “We are proud to support the world-class team that Baraka is shaping as our first investment into the Middle East. The growing fintech ecosystem in the region has huge potential and we are encouraged by the early signs that Baraka has been able to show. We look forward to working closely with the company as it enters this new phase of growth in the region.
As part of its growth plans, Baraka intends to create more access to regional economies with the aim of securing a license at some point in the future. The company has leveraged most of this fundraising to create additional local stock exchanges for new markets and regional investors.
In the year Launched in 2021, it is focused on empowering investors in the region with commission-free investing and access to more than 6,000 US stocks and exchange-traded funds (ETFs). The startup is regulated by the Dubai Financial Services Authority (DFSA).
Starting at $1, investors at Barca can build diversified portfolios and long-term wealth by taking advantage of global equity markets to achieve financial freedom.
With its mobile-only experience, the Barka app delivers daily financial news in English and Arabic to help users make informed and independent investment decisions. Baraka’s focus on driving financial inclusion is underpinned by his commitment to raising financial literacy levels in the region.
To democratize access to emerging regional equity markets like Tadawul and attract international investors to the Middle East, Baraka said he is working with local stock exchanges and regulators to make local market trading accessible through the app.
In line with initiatives such as KSA’s Vision 2030 for the financial sector, it plans to introduce its highly successful Arabic content to newly licensed markets to promote financial inclusion.