Turkish fintech firm Colendi has secured $65 million in a Series B funding round, bringing its valuation to $700 million. This significant investment supports Colendi’s plans to establish itself as a major player in the digital banking sector across emerging markets.
The funding round was led by Citi Ventures, the venture capital arm of Citigroup, signaling strong interest from major financial institutions in Colendi’s innovative fintech solutions. The round also saw participation from a diverse array of investors, including Migros Ticaret AS, Sepil Ventures, Re-Pie Asset Management, Finberg, and Hedef Holding. Existing investors also contributed, reflecting continued confidence in Colendi’s strategic direction.
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Innovative Services with a Privacy Focus
Founded by Bulent Tekmen, Colendi offers a suite of financial services, including fraud protection, “financial passports,” and credit scoring, with a strong emphasis on data privacy. The company claims it can provide these services without retaining users’ personal data, an approach that is particularly appealing in regions with strict data privacy laws.
Expansion into Emerging Markets
Currently, the firm boasts a user base of 17 million in Turkey. With the new funding, the company plans to expand into populous emerging markets such as Pakistan and Indonesia. Its long-term goal is to become a leading digital banking service in the Europe, Middle East, and Africa (EMEA) region and the Gulf Cooperation Council (GCC) countries.
Bulent Tekmen, founder of Colendi, is confident that the company will achieve unicorn status (a valuation over $1 billion) by the end of 2024. He noted that the Series B funding round, which was “in extreme demand,” will provide the necessary resources to launch Colendi Bank.
Looking Ahead
While fintech’s growth prospects are promising, the company will need to navigate complex regulatory environments in the emerging markets it plans to enter. Furthermore, its commitment to data privacy will require clear communication to assure users of its practices.
The substantial funding and ambitious expansion plans positions the company as a significant contender in the global fintech sector. Its unique approach to data privacy could give it a competitive edge, though the company must address regulatory and transparency challenges to achieve its long-term goals.
