Thndr, an Egyptian digital investment platform, announced a fresh $20 million series A funding round headed by Tiger Global, BECO Capital, and Prosus Ventures, with participation from Base Capital, first minute, and current investors Endure Capital, 4DX Ventures, Raba Partnerships, and JIMCO.
The fresh funds will be used for product development and expanding Thndr’s presence throughout the MENA area. Thndr has rapidly increased its assets under custody – 29x by 2021 – and monthly traded values have increased at a similar rate. Thndr also accounted for 36% of all new registrations in Egypt’s local exchanges in 2021.
“We are establishing an investment supermarket enabling MENA customers to access relevant investment goods,” stated Ahmad Hammouda, Co-founder and CEO of Thndr. We provide investors with the knowledge they need to make their own investing decisions. We take satisfaction in being change agents in the investment business and remaining committed to our purpose of democratizing investing for everyone in the region. The support of top global investors is a substantial affirmation of our strategy and the region’s very evident market opportunity. We’re excited to announce this fresh round of funding to help us continue to pioneer wealth tech in the region.”
Thndr, which was founded in late 2020 by Ahmad Hammouda and Seif Amr, is filling this void by modernizing the region’s previously archaic, slow, and inefficient process of opening and managing investment accounts.
Through its mobile-based and low-commission digital stock brokerage, the company makes it simple to invest in stocks, bonds, and ETFs in the region.
“We’re delighted to help Ahmad, Seif, and the Thndr team as they make investment more accessible in Egypt and the MENA area,” said Alex Cook, Partner at Tiger Global. The market is in desperate need of a low-cost, user-friendly platform for investing and saving, and we believe Thndr will provide best-in-class customer service as the platform grows.”
When it comes to investing platforms, MENA countries are considerably underserved when compared to the US and Europe, with current investor penetration of less than 3% across the region. The fundamentals of the MENA market are compelling: The region’s 370 million people have amassed $500 billion in yearly savings; Sixty-two percent of the population owns a smartphone, and half of the population is between the ages of 14 and 45. Platforms like Thndr are making investors out of people who previously had little exposure to the stock market. In fact, 87 percent of Thndr’s users are first-time investors, with 40 percent hailing from rural areas.
“The Thndr team’s vision and purpose to empower millions of citizens across the MENA region, beginning with Egypt, to become everyday investors resonated very powerfully with us,” said Yousef Hammad, Managing Partner at BECO Capital. We’ve known the Thndr team since its inception and have witnessed firsthand the team’s capacity to execute on a consistent basis. Following a thorough examination of the MENA scene, it became evident that Hammouda and the Thndr team are tackling the space considerably more effective than others.”
“Compared to other developed regions, the opportunity in MENA for stock brokerage is more challenging for an international player to seize given the regional fragmentation, cultural subtleties, and regulatory framework,” said Sandeep Bakshi, Head of European Investments for Prosus Ventures. Thndr is in an exceptional position to capitalize on this massive opportunity. We believe the mission of the company is part of a transformative age for fintech in the region, allowing a wider and younger population of individuals to access equity capital markets.”
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