Adtech Startup Magfi Secures $1.1M, Led by Eleven Ventures

Magfi, a SaaS platform specializing in simultaneous advertising across Telegram and Discord communities using machine learning and AI technologies, has successfully raised $1.1 million in Seed funding. This funding round was led by Eleven Ventures, a Bulgarian-based venture capital firm known for its investments in successful unicorns such as Payhawk. Svetozar Georgiev, a partner at Eleven Ventures, will join Magfi's board of directors, bringing valuable expertise and support to accelerate the company's growth trajectory.

Telegram and Discord collectively boast nearly 1.5 billion monthly users, who are organized into groups centered around specific topics. Before Magfi's emergence, group administrators had to manually seek out advertisers to place ads within their communities to generate income. Advertisers, on the other hand, faced challenges in accessing this vast user base, particularly in targeting ads effectively and at scale within these chat-based platforms. Magfi's solution addresses these issues by streamlining the ad placement process. It enables advertisers to efficiently target the most relevant groups with rich, interactive ads that are seamlessly integrated within the chat context of these groups. This approach not only simplifies the advertising process but also provides immense value to group owners, who can now effortlessly attract relevant advertisers while focusing on community growth and improving the quality of their groups.

Since its launch, Magfi has distributed over 1 million ads across channels with thousands of subscribers, covering a wide range of niche topics, including Sports, Finance, News, and Video Gaming. The platform currently reaches 600,000 unique users daily, highlighting its significant impact and reach. Within just a year of its pre-seed investment, Magfi has achieved impressive growth, increasing its initial four-digit revenue by 25 times. The company's diverse customer base includes fast-growing and multinational companies, such as major banks in Turkey, global e-commerce firms, and renowned advertising agencies.

With the new influx of capital, Magfi plans to expand its team to drive more aggressive growth. The company aims to fully automate its processes and systems, from onboarding to support and ad optimization. A major focus of this expansion is to extend operations beyond Turkey, with Brazil identified as the next strategic target market. Brazil presents a promising opportunity with its 220 million population and a 50% Telegram usage rate. Magfi's goal is to bring the same level of sophistication and effectiveness found in popular social media advertising platforms to the world of chat-based communities.

Svetozar Georgiev of Eleven Ventures expressed his enthusiasm for Magfi's potential, stating, "Advertising on decentralized chat-based communities is a Blue Ocean market, where Magfi has a head start. Unlike traditional social media, the dynamics here are different, which is both a challenge and a great opportunity. The founders and the team impressed us with their vision, deep understanding of the Web3 world, and strong passion for product excellence. They are relentless, and we are excited to join them on this journey."

Mustafa Fikret Uğur, CEO and co-founder of Magfi, emphasized the transformative potential of Web3-based messaging platforms like Telegram and Discord. He noted, "The world is shifting towards Web3-based messaging, with Telegram and Discord leading the way as the pioneering platforms in this sector. There are over 1 billion monthly active users, and enormous potential within these communities. At Magfi, we are unlocking that potential, enabling brands to reach audiences they previously couldn't access by targeting highly relevant ads through Magfi Ads on these platforms. Tens of thousands of group owners can also monetize the content they create. Our young and dynamic team, with an average age of 24, is at the forefront of developing this technology. With this investment, we will solidify our position in the Turkish market and begin operations in Latin America. We are also working on leveraging generative AI technologies to create ad creatives tailored for each community."

Magfi's innovative approach positions it at the forefront of advertising within decentralized chat-based communities, paving the way for a new era of targeted, relevant, and effective digital marketing.