Backed by Valar, baraka nets $20m

Series A round taps funds from Thiel’s Valar Ventures and Knollwood

DIFC-based baraka — an equity and ETF trading platform — has drawn in $20 million for a Series A round, bringing on board Valar Ventures backed by US billionaire and PayPal cofounder Peter Theil.

Launched last year, baraka offers its users access to commission-free investing and more than 6,000 US stocks and Exchange Traded Funds (ETFs). Users can start placing their trades from as low as $1, with Baraka hoping to cash in on a trend that has seen UAE and Gulf investors take to global equity and diversify from property investment and bank deposits.

This is Valar Ventures’ first investment in the region and has previously backed global fintech unicorns Wise, N26 and BitPanda among others. The funds drawn in by baraka from Valar — and investment firm Knollwood — would be used for further regional expansion. The plan is to ‘secure licensing at some point in the future’.

The company has committed the majority of this fund raise to new markets and ‘create more access to local stock exchanges for regional investors’. “Tens of thousands of users have signed up to baraka,” said Feras Jalbout, founder and CEO of baraka. “By empowering the next generation of investors in our region with low-cost and comprehensive investment choices, we remain committed to enabling financial inclusion for millions of investors across MENA.

“We are excited to have Valar Ventures and Knollwood join us in transforming how users here save, invest and grow their money for the future.”