InvestSky, a social investing platform for retail investors, has secured $3.4m in its pre-seed funding round, to support its mission of making investing more inclusive.
Emkan Capital, an investment firm focused on technology companies, served as the lead investor. Other backers included S3 Ventures, Al-Romaizan Family office, Jahez deputy CEO Mishal Al-Mishari and other angel investors.
Founded in 2021 by Nitish Mittal and Turki Alshaikh, InvestSky is a social investing, commission-free platform aimed at the next generation of investors in the Gulf Cooperation Council (GCC). Their aim is to make investing inclusive, intuitive and informed.
Through the platform, users can buy fractional stocks, starting from $1, and access a social community to collaborate. The platform will also offer market intelligence data to help investors make more informed decisions aligned with their investment principles, whether that is shariah-compliance or positive social and environmental impacts.
InvestSky CEO Nitish Mitta said, “We founded InvestSky on the recognition that retail investors are a hugely influential group across the middle east, yet the offering for them is clearly lagging behind. The region has not scratched the surface when it comes to the engagement and education of retail investors, especially considering the significant purchasing power, high GDP per capita and beneficial demographics.
“We intend to offer an empowering platform that helps educate our users to make sound investment decisions; powered by socially connected tools that will help build a collaborative community in the region.”
The startup received a category 4 licence with retail endorsement from Dubai Financial Services Authority (DFSA).
InvestSky co-founder Turki Alshaikh added, “The retail investor services market in the region is still highly untapped. The number of retail investors using fintech solutions grew by more than 180% over the past year, in Saudi alone, according to the CMA. Beyond this, we see a big gap in financial inclusion, with female retail investors making up less than 27% of investors.
“We believe that educating our users is key to building a sustainable market by improving both financial literacy and inclusion.”
Saudi Arabia FinTech deal activity grew by 19% in 2022, overcoming the global trend.
Copyright © 2023 FinTech Global