NAGA obtains $30 million funding from Yorkville Advisors

German fintech company NAGA Group AG has recently revealed that it has secured capital financing for up to $30 million throughout the following 3 years, after signing a deal with US fund Yorkville Advisors. This agreement comes as NAGA Group’s share price increased by over 6% in a recent trading session.

To receive the funds, NAGA will initially and immediately withdraw $8 million, issuing convertible notes to access the proceeds. NAGA also confirmed that the funding will be carried out in tranches.

Benjamin Bilski, CEO of NAGA, said:

Benjamin Bilski, Naga Group

Benjamin Bilski
Source: LinkedIn

We are excited about the deal with Yorkville and are setting the course for NAGA to scale even faster. The financing gives us the power and the flexibility to allow the company to be taken to the next level. This decade will definitely be the breakthrough period for FinTechs.

While NAGA is commonly associated with its copy trading services, the company has significantly expanded its services over the past few years, including the launch of a digital payments service back in November 2020. It is also in the process of meeting regulatory approvals to expand internationally into South Africa and Australia.

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As previously mentioned, the funding agreement occurred just as NAGA was experiencing a rapid increase in demand spanning all of its business metrics. In February 2021, the broker reported a total trading volume of around $20 billion and passed a milestone of 1 million monthly transactions. On top of this, 37,000 new trading accounts were opened.

The publicly listed German broker also confirmed that the demand for its copy trading services had increased dramatically, jumping 75% in February alone on a month-on-month basis, while new registrations to the broker soared by 45%.

Bilski said:

The user growth, and particularly the activity and engagement ratios make us feel very confident. Evidently the concept of social media combined with trading at NAGA works very well.”

NAGA works to connect investments and personal finance transactions via its social trading platform, providing a range of products, including stock trading, investments and cryptocurrencies to a physical Mastercard. The platform also allows for exchanges between other traders, providing relevant information in the feed, as well as autocopy features for successful members’ transactions.

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