Arab News, Sunday, Jan 22, 2023 | Jamadi Al Thani 29, 1444
UAE fintech InvestSky raises $3.4m in pre-seed funding
Saudi Arabia: UAE-based InvestSky
has raised $3.4 million in a pre-seed funding round led by Saudi venture capital
firm Emkan Capital with participation from other investors.
Established in 2021, InvestSky is a social
investing platform tailored for the new generation of investors in the Middle
East with the aim of making stock trading inclusive, intuitive and informed.
In an exclusive interview with Arab News, Nitish
Mittal, CEO and co-founder of InvestSky, said that the company targets
non-professional investors to solve their investment needs with a
“Particularly across Gulf Cooperation Council
countries the space is ripe for disruption, and we want to help a new era of
investors to put their money to work,” Mittal told Arab News.
The platform allows users to buy fractional stocks
starting from $1 on a commission-free basis and provides a social community for
users to collaborate.
“We offer a freemium subscription-based model,
where the premium plan comes with advanced features that help users make
informed decisions,” Mittal explained.
He also added that users will be able to use the
service for free which will encourage them to switch to the subscription after
recognizing the value provided by the app.
“We want to take away the hurdles and perceived
difficulties of investing and our ambition is to make investing seamless,
intuitive and informed,” Mittal said.
He added: “We’re basing our business model on our
deep understanding of what the new era of investors want which includes
convenience, simplicity, collaboration and ease of use.”
Mittal aims to expand the company to the entire
GCC region while enhancing the platform’s features and system to help users get
access to the tools and information they need.
“When you bring people together you can create
incredible opportunities for people to learn from one another and simultaneously
we also see this as an opportunity for us to learn from our community,” he
Moreover, the startup managed to receive a
category 4 license with retail endorsement from the Dubai Financial Services
The company also provides market intelligence data
which will further empower investors to make more decisions aligned with Shariah
compliance or social and environmental impacts.
“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 company also managed to get other Saudi
investors on board including S3 Ventures, Al-Romazian Family Office and Mishal
Al-Mishari, the deputy CEO of Saudi food delivery app Jahez.
Co-founder of InvestSky, Turki Al-Shaikh, stated
that the number of non-professional investors using fintech solutions grew by
more than 180 percent over the past year in Saudi Arabia alone.
“Beyond this, we see a big gap in financial
inclusion, with female non-professional investors making up less than 27 percent
of traders. We believe that educating our users is key to building a sustainable
market by improving both financial literacy and inclusion,” Al-Shaikh explained.