Colendi Secures $65 Million in Series B Funding

Colendi, a Turkish fintech company, has raised $65 million in a Series B funding round, boosting its valuation to $700 million. This investment aims to propel Colendi’s growth into a leading digital banking entity across emerging markets.

Led by Citi Ventures, the venture capital arm of Citigroup, the funding round also saw participation from Migros Ticaret AS, Sepil Ventures, Re-Pie Asset Management, Finberg, and Hedef Holding. The involvement of these diverse investors underscores strong confidence in Colendi’s fintech strategy and vision.

Founded by Bulent Tekmen, Colendi offers services such as fraud protection, “financial passports,” and credit scoring, with a distinct emphasis on data privacy. The company claims it does not retain users’ personal data while providing these services, an approach likely to appeal in markets with stringent data privacy regulations.

With 17 million users in Turkey, Colendi plans to use the Series B funding to expand into emerging markets like Pakistan and Indonesia. The company aims to become a major digital banking player in the Europe, Middle East, and Africa (EMEA) region and the Gulf Cooperation Council (GCC). Tekmen is optimistic about achieving unicorn status, a valuation of over $1 billion, by the end of 2024. The new funding will also support the establishment of Colendi Bank.

Despite the promising outlook, Colendi faces challenges, including navigating regulatory landscapes in new markets. Additionally, the company’s data privacy practices need clear communication to build user trust, particularly regarding how it offers credit scoring without retaining personal data.

Colendi’s substantial funding and strategic expansion plans position it as a significant contender in the global fintech arena. Its commitment to data privacy could provide a competitive edge, although regulatory compliance and transparency will be critical to its success.