KTrade, a trading app, has raised $4.5 million in a funding round from foreign investors

KTrade, a leading Pakistani fintech stock trading app, revealed today that it has secured $4.5 million in a fundraising round headed by Hong Kong-based TTB Partners and New York-based HOF Capital. Christian Angermayer, a German fintech investor, David Mortlock, the Managing Partner of German bank Berenberg, and significant Pakistani business families also took part in the round.

KASB Securities, Pakistan's top stock brokerage, developed KTrade, a fintech retail trading app. KTrade, like its worldwide contemporaries XP in Brazil, Zerodha and Groww in India, Tiger in China, Flatex in Germany, and Robinhood in the United States, provides simple access to financial markets for ordinary investors.

KTrade has over 200,000 customers since its start in 2019 and hopes to reach 10 million Pakistanis at home and abroad by 2023 using its mobile platform to invest in equities, bonds, commodities, and mutual funds. Despite recurrent market cycles, the Karachi Stock Exchange Index (KSE100) has risen 19 percent per year over the last 20 years.

In the past 18 months, volumes have been boosted 7 times, driven by the time of the application and an increase in the number of retail investors. Compared to roughly 45 percent just 24 months ago, retail investors now account for over 65 percent of global trading activity. KTrade wants to make this investment opportunity accessible to people quickly and easily.

KTrade was founded by Ali Farid. He was formerly the CFO of SafeCharge (purchased by Nuvi), a UK-listed fintech business, and a Partner at Autonomous Research (purchased by Alliance Bernstein) in London. Ali has been a top-ranked Technology Analyst in Europe since 2013 and is a Rhodes Scholar.

Ali Farid, Co-founder of KTrade, commented

In Pakistan, when people contemplate investment choices, they have typically gone toward gold or property. However, with the Karachi Stock Exchange's regulatory approach, authority and trust growing, more individuals are comfortable investing stock markets. This is a tendency that is encouraging, yet access to these markets remains a challenge for millions. KTrade will allow this first mobile population to take part in the investing opportunities. By linking these people with enterprises, we may bring unproductive assets-trapped money into the formal system, leading eventually into a virtuous cycle of economic growth and overall investment."

Pakistan emerges as the next Indonesia on the radar of world investors. A huge, youthful and growing medium-sized and high-intensity smartphone has created excellent circumstances for technological disruption. The purpose of KASB is to give retail savers access to and enable them to make better financial decisions, including access to financial education, information and financial products.

"Most individuals in Pakistan lack access to formal financial instruments, and their savings in property or gold are lower, inefficient and costly. Therefore, we are seeking to distribute access to and allow stock market investments in capital markets. The high demand for KTrade demonstrates that the market is ready for this change. Similar trends have been witnessed in other regional and emerging markets headed by successful fintech startups," Ali Farid noted.

Jonathan Bond, Managing Partner TTB Parties who oversaw the financing round, said: "Pakistan and South Asia have some of the most intriguing market data by means, with KTrade ideally positioned to capitalize on the globalization of finance in the area.

"We are pleased to join in the newest investment round for KASB and to continue to support Ali and his first-class teams. We were quite pleased by what KASB has developed in recent years from both a tech and educational point of view to the investment that the firm took over. Jonathan Bond said that in particular, we believe in the excellent solution in KTrade to develop the investors' interests in Pakistan."
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