Fintech
Turkish digital bank Colendi achieves $700 million valuation in Series B funding
Turkish digital banking startup Colendi has raised $65 million in a Series B funding round, boosting its valuation to $700 million. After the oversubscribed round, the fintech hopes to reach a market capitalization that will grant it unicorn status when it raises additional funds.
Colendi, formerly known as Colendi Yapay Zeka ve Buyuk Veri Teknoloji Hizmetleri AS, has made great strides in digital banking. In 2023, it received approval from the Turkish banking regulator to establish a digital bank and currently has ambitious plans to become an international neobank.
Bulent Tekmen, co-founder and CEO of Colendi, expressed confidence in the company’s future, saying that the Series B round had raised the investment needed to create Colendi Bank.
“The financing will drive the company’s mission to become a leading digital banking entity in EMEA, GCC and Turkish Republics,” Tekmen added in the interview.
The Istanbul-based fintech and digital services company has ambitious growth plans, aiming to reach a $1 billion valuation by the end of the year. Colendi has already started a new one round of financing in March, with a goal of raising more than $150 million. Tekmen believes that once this round closes, Colendi will join the ranks of unicorn startups, a term used to describe companies with a valuation of $1 billion or more.
1 billion users and potential IPO
With a user base of 17 million in Turkey, Colendi aims to reach 1 billion users in the future. To achieve this, the company plans to expand into emerging markets with large populations, such as Pakistan and Indonesia.
Seeking additional funding to help meet valuation and usage targets, the digital bank also plans to become a public limited company and pursue a dual listing on the UK and Turkish stock exchanges. According to the CEO, the fintech It should be ready by 2026.
However, competition in the digital banking market is increasing. A few months ago Monzo, the British startup in this field, received several hundred million dollars in additional funding, bringing its valuation to $5 billion. Brazilian Nubank also performed wellwith a valuation exceeding $40 billion, as it currently aims to achieve revenues above $1 billion.
The market is becoming saturated and, even worse, the trend towards financing fintechs through venture capital has recently declined. Global investment in fintech fell to $113.7 billion in 2023a significant decline and the lowest results in the last five years.
The oversubscribed round attracted a diverse group of investors, including Citi Ventures, the venture capital arm of Citigroup Inc., as well as major Turkish firms such as Migros Ticaret AS, Sepil Ventures, Re-Pie Asset Management, Finberg and Hedef Holding.
Turkish digital banking startup Colendi has raised $65 million in a Series B funding round, boosting its valuation to $700 million. After the oversubscribed round, the fintech hopes to reach a market capitalization that will grant it unicorn status when it raises additional funds.
Colendi, formerly known as Colendi Yapay Zeka ve Buyuk Veri Teknoloji Hizmetleri AS, has made great strides in digital banking. In 2023, it received approval from the Turkish banking regulator to establish a digital bank and currently has ambitious plans to become an international neobank.
Bulent Tekmen, co-founder and CEO of Colendi, expressed confidence in the company’s future, saying that the Series B round had raised the investment needed to create Colendi Bank.
“The financing will drive the company’s mission to become a leading digital banking entity in EMEA, GCC and Turkish Republics,” Tekmen added in the interview.
The Istanbul-based fintech and digital services company has ambitious growth plans, aiming to reach a $1 billion valuation by the end of the year. Colendi has already started a new one round of financing in March, with a goal of raising more than $150 million. Tekmen believes that once this round closes, Colendi will join the ranks of unicorn startups, a term used to describe companies with a valuation of $1 billion or more.
1 billion users and potential IPO
With a user base of 17 million in Turkey, Colendi aims to reach 1 billion users in the future. To achieve this, the company plans to expand into emerging markets with large populations, such as Pakistan and Indonesia.
Seeking additional funding to help meet valuation and usage targets, the digital bank also plans to become a public limited company and pursue a dual listing on the UK and Turkish stock exchanges. According to the CEO, the fintech It should be ready by 2026.
However, competition in the digital banking market is increasing. A few months ago Monzo, the British startup in this field, received several hundred million dollars in additional funding, bringing its valuation to $5 billion. Brazilian Nubank also performed wellwith a valuation exceeding $40 billion, as it currently aims to achieve revenues above $1 billion.
The market is becoming saturated and, even worse, the trend towards financing fintechs through venture capital has recently declined. Global investment in fintech fell to $113.7 billion in 2023a significant decline and the lowest results in the last five years.
The oversubscribed round attracted a diverse group of investors, including Citi Ventures, the venture capital arm of Citigroup Inc., as well as major Turkish firms such as Migros Ticaret AS, Sepil Ventures, Re-Pie Asset Management, Finberg and Hedef Holding.