Turkish fintech achieves $700 million valuation with fresh funding

Turkish financial technology (fintech) companies have made a robust entry into 2024, with new investment announcements being made almost every month, serving as a morale booster for Türkiye’s startup ecosystem.

In a time when accessing finance is becoming increasingly challenging, Turkish fintech Colendi this week announced it had managed to raise a total of $65 million in a Series B funding round.

The company met the requirements of the Banking Regulation and Supervision Agency (BDDK) last year and received approval to engage in digital banking.

The funding round has boosted the digital banking startup’s valuation to $700 million.

With 17 million users in Türkiye, Colendi aims to reach 1 billion users globally in the near future. To achieve this, the company plans to expand into large, developing markets in Asia, such as Indonesia and Malaysia.

Targeting $1 billion valuation

The funding round included investors such as Migros and the venture capital arm of Citigroup Inc.

Apart from Citi Ventures and Migros, Sepil Ventures, Re-Pie Asset Management, Finberg and Hedef Holding also participated in the Series B round, according to Bülent Tekmen, co-founder and CEO of Colendi.

“The financing will support our mission to become a significant digital banking institution across the EMEA (Europe, the Middle East and Africa), GCC (Gulf Cooperation Council) and Turkic republics,” said Tekmen.

In 2023, the Banking Regulation and Supervision Agency approved Colendi’s application to establish a digital bank. Tekmen noted that the proceeds from the funding round will be used to finance the establishment of Colendi Bank.

He also revealed that the company aims to raise over $150 million in a Series C funding round by the end of the year, with the goal of achieving a $1 billion valuation and becoming a unicorn.

Colendi plans to be ready for both domestic and international public offerings by 2026, with London being a prime location for its overseas initial public offering (IPO).

Broader AI application could enhance growth

Artificial intelligence (AI) will have a direct and positive impact on the productivity and growth of both public and private sectors, a report revealed.

The report estimates that the broad application of generative AI could potentially add an annual 5% increase to gross domestic product (GDP) within a decade.

Artificial intelligence is playing a key role in enhancing the competitiveness and efficiency of countries worldwide, including Türkiye. New AI models and applications are continually being developed, contributing positively to institutional growth and competitiveness.

To analyze the economic potential of AI in Türkiye, Google collaborated with Implement Consulting Group and released a report suggesting that widespread application of generative AI in the country could lead to an additional annual GDP growth of approximately 5% within the next 10 years.

Recent advancements have increased the capabilities and availability of AI models, accelerating their adoption for individual use. In 2023, 28% of workers globally used generative AI in their jobs.

AI adoption among startups

In 2023, only 5.5% of startups in Türkiye used AI solutions. This indicates that generative AI technology is still in its early stages and has not yet been widely adopted at the corporate or institutional level. However, in the most advanced countries, the economic contributions of generative AI could peak within a decade.

Academic studies show that the adoption of AI at the company level typically enhances workforce productivity by 2-3 percentage points annually. The “Economic Potential of AI in Türkiye” research conducted by Implement Consulting Group at Google’s request aimed to analyze the potential impact of AI on the country’s economy, employment and societal issues.

Boosting productivity

Mehmet Keteloğlu, Google Türkiye country director, said the report aims to shed light on the potential and future of AI.

“According to the report, if generative AI finds broad application in Türkiye, it could lead to an annual additional GDP growth of 5% within approximately 10 years. However, a five-year delay in AI implementation could reduce this potential to 1%,” Keteloğlu noted.

“The report also predicts that 55% of employees could enhance their capacities, skills and productivity through generative AI. Despite this potential, Türkiye lags behind global players in complementary innovations, investments and AI-related skills. To bridge these gaps, Türkiye needs to make strides in skill development, R&D activities and commercialization,” he said.

Seizing opportunities with AI

We uploaded the report to Gemini Advanced. Google’s most powerful chatbot yet summarized how Türkiye should prioritize its efforts regarding artificial intelligence.

The report lists the areas in which Türkiye needs to invest to become more competitive in the field of artificial intelligence as follows:

Fostering Innovation: Creating an environment conducive to developing and applying innovative AI solutions.

Investing in AI Research and Development: Allocating resources to research and development to improve AI technologies.

Creating a Favorable Regulatory Framework: Establishing legal regulations that support and manage the use of AI technologies.

Supporting Widespread Use and Universal Accessibility: Developing policies to ensure AI technologies are accessible and usable by all segments of society.

Developing Human Capital and an AI-Supported Workforce: Training skilled professionals in AI and educating the existing workforce to work with AI technologies.

Investing in AI Infrastructure and Processing Power: Providing the necessary infrastructure and computational power for developing and running AI applications.

AI tips to simplify daily life

In the rapidly evolving world of technology, artificial intelligence has become an integral part of our daily lives. With new AI models and applications being announced weekly, the ability and speed of performing tasks have significantly improved.

AI is a powerful tool that can help us work more efficiently, manage our time better and enhance our overall quality of life. One of Türkiye’s leading telecommunications and technology companies, Türk Telekom recently shared AI-generated content on its blog, offering tips on how AI can simplify our daily routines.

Here are some AI-powered tips to make your daily life easier:

Personal assistants

AI-powered personal assistants are great for organizing tasks and setting reminders. Assistants like Siri, Google Assistant and Alexa can perform various tasks through voice commands, making them a convenient tool for managing daily activities.

Smart home technologies

Devices like smart heating controls, lighting systems and security cameras provide automation and remote control thanks to AI. These technologies help save energy and enhance home security.

Recommendation systems

Platforms that offer personalized usage employ AI algorithms to recommend content that matches your interests. This makes your time spent on these platforms more efficient and enjoyable.

Health and medicine

AI can improve diagnostic and treatment processes in the medical field. For example, AI can analyze radiology images and quickly provide results to doctors, enhancing the speed and accuracy of medical assessments.

Language translation

AI-powered translation tools help facilitate communication in different languages. This feature is particularly useful when traveling or trying to understand texts in foreign languages.

Education and learning

AI can offer customized educational materials and optimize learning processes for students, helping them achieve better results through tailored learning experiences.

In conclusion, artificial intelligence has great potential to make your daily lives easier and more efficient in many areas, from smart home technologies and recommendation systems to health care applications and language translation. By using these technologies correctly, you can manage your life better and gain more time.

Teknopark Istanbul’s new business model to prepare startups for global stage

Teknopark Istanbul has introduced a groundbreaking new business model called the Technology Sales System (TECHSAS) designed to help entrepreneurs and companies gain recognition and improve their sales and marketing effectiveness both in Türkiye and global markets.

At the launch event held at the Turgut Özal Event Center, Teknopark Istanbul Chairperson Metin Yerebakan emphasized that sales and marketing activities are one of the biggest challenges for entrepreneurs today.

“To promote and sell their products and services more effectively, companies need to work and conduct analyses in various areas. Enhancing brand awareness and image, ensuring customer loyalty and conducting market research have become as crucial as producing the product itself,” Yerebakan stated.

“At Teknopark Istanbul, we aim to address the isolation entrepreneurs face in marketing and sales with the TECHSAS Model, in addition to focusing on entrepreneurship, technology production and research and development.”

540 companies, counting

M. Fatih Özsoy, general manager of Teknopark Istanbul, highlighted the park’s transformation into Türkiye’s “Deep Technology Center,” now home to 540 companies and 10,185 R&D engineers.

“Teknopark Istanbul, the largest technology development zone in Istanbul, plays a significant role in our country’s technology-driven development and the Turkish entrepreneurial ecosystem. It has quickly become a hub for enhancing Türkiye’s technology capacity, facilitating international collaborations that allow our technological products and production inventory to reach global markets,” Özsoy emphasized.

“With TECHSAS, which will be a milestone in Teknopark Istanbul’s history, we aim to make our companies more effective in sales and marketing, increase their visibility in international markets and boost their export potential.”

Leading ecosystem

Designed as a sub-brand of Teknopark Istanbul, the Technology Sales System model will develop marketing and sales strategies to help companies grow according to market demands. TECHSAS will Domestic and International Marketing Directorate and departments like Marketing, Operations Supply Chain, Finance and Law.

The TECHSAS model aims to generate revenue through Product Sales, License Sales and Annual Maintenance Agreements. The revenue will be collected in a fund at Teknopark Istanbul and used to support the growth strategies of next-generation entrepreneurs. The TECHSAS model is also set to be a first for Türkiye’s technopark ecosystem.