Startup investments in Türkiye reached a record $2.6 billion in 2024, according to the “Türkiye Startup Investments” report prepared by KPMG Türkiye M&A and 212 teams. The report highlights significant growth in both transaction volume and deal count in Türkiye’s startup ecosystem.
The total number of transactions increased from 297 in 2023 to 331 in 2024, while the disclosed transaction volume surged from $497 million to an all-time high of $2.6 billion.
Global Trends Show a Decline in Transactions but Growth in Investment Volume
Despite a slight drop in the number of transactions, the global startup ecosystem demonstrated resilience in 2024, with investment volume increasing. The total number of global transactions declined by about 6% to 35,685, while the total investment volume grew by approximately 7% to $368.3 billion.
In 2024, the startup landscape was shaped by emerging sectors such as artificial intelligence, defense technologies, healthcare and biotechnology, cybersecurity, and alternative energy. However, geopolitical tensions, inflation, and concerns over interest rates also impacted valuations and exit strategies.
Türkiye’s Startup Ecosystem Proves More Resilient
While global economic uncertainties led to a decline in entrepreneurship activity worldwide, Türkiye’s startup ecosystem showed remarkable resilience, recording substantial growth in both deal count and transaction volume. Türkiye outperformed global trends, with transaction volume increasing by $2.1 billion year-over-year.
KPMG Türkiye M&A Advisory Partner Özge İlhan Acar commented:
“2024 was a year of slowed global growth. The U.S. presidential elections, the ongoing Russia-Ukraine war, and geopolitical tensions in the Middle East created uncertainty in global markets, leading investors to act cautiously. Despite aligning with global trends, Türkiye’s startup ecosystem recorded a record-breaking increase in investments.”
One of the key contributors to this surge was Hepsiburada’s acquisition by Kazakhstan-based Kaspi.kz for a record $1.1 billion. However, even excluding this transaction, investments still grew by approximately $1 billion.
The number of deals in Türkiye’s startup ecosystem also rose from 297 in 2023 to 331 in 2024, showing a positive divergence from the global trend.
2024 Marks a Turning Point for Türkiye’s Startup Ecosystem
According to 212 Co-Founder Ali Karabey:
“2024 was a pivotal year for Türkiye’s startup ecosystem. Acquisitions and late-stage investments demonstrated the ecosystem’s growth and increasing dynamism. The investment volume was largely driven by these two areas. While fintech remained the leader in terms of deal count, the marketplace sector attracted the most investor interest. The acquisition of Hepsiburada, Insider’s major investment, and large funding rounds further cemented Türkiye’s potential. Additionally, IPOs allowed startups to engage with a broader investor base, strengthening Türkiye’s position in the global startup landscape.”
Acquisitions and Late-Stage Investments Dominate 2024
In 2024, acquisitions and late-stage investments accounted for a significant portion of Türkiye’s startup transaction volume, comprising 58% and 29%, respectively, with a combined value of approximately $2.3 billion. However, early-stage investments also played a crucial role, with 280 seed-stage deals recorded.
Fintech Leads in Deal Count, Marketplaces Dominate Investment Volume
- Fintech was the most active sector in terms of deal count, with 31 transactions.
- Biotechnology (28 deals) and artificial intelligence (25 deals) followed closely behind.
- Software as a Service (SaaS), gaming, and health tech also remained active sectors.
- In terms of investment volume, the marketplace sector led with $1.2 billion, primarily due to the Hepsiburada acquisition, followed by SaaS with $546 million.
Gaming Sector Continues to Attract Investors
Türkiye’s gaming industry remained attractive for international investors in 2024, with major deals involving:
- Paxie Games’ sale to South Korean DoubleU Games for $67 million
- Spyke Games securing $50 million from Israeli Moon Active
- Grand Games and Agave Games receiving $30 million and $18 million, respectively, from UK-based Balderton Capital
Notably, 13 out of the 20 gaming deals in 2024 were led by financial investors, ensuring a balanced capital flow into the sector. Türkiye’s startup ecosystem continues to capture investor interest with successful exits and attracts young talent to the industry.
Increased Activity in International and Diaspora Startup Deals
- The largest international deal was the acquisition of a 65% stake in UAE-based NEOPAY by Turkish fintech company Dgpays and Bahrain-based Arcapita Group Holdings for $250 million. This deal positions Dgpays as a key regional fintech player.
- The largest diaspora deal involved U.S.-based health tech startup BillionToOne, co-founded by Turkish entrepreneur Oğuzhan Atay, raising $130 million. BillionToOne aims to advance molecular diagnostics, improving prenatal screening and oncology diagnostics.
Key Startup Investments and Acquisitions in Türkiye in 2024
- Hepsiburada’s $1.1 billion acquisition by Kazakhstan-based Kaspi.kz – the year’s only mega-deal, significantly contributing to the total transaction volume.
- Insider’s $500 million late-stage investment from General Atlantic, pushing the SaaS leader closer to decacorn status.
- Getir’s $250 million investment from Mubadala Investment Company, shifting management control to Mubadala.
- Fintech giant Paynet’s $87 million acquisition by iyzico, marking the largest fintech transaction between two Turkish companies.
IPOs Play a Crucial Role in 2024
IPO activity surged in 2024, with key public offerings including:
- Altınay Defense, a leading autonomous vehicle company, raised $58.5 million by selling a 25% stake.
- BinBin, a provider of eco-friendly mobility solutions, raised $45.7 million by offering a 15.2% stake.
Türkiye’s Startup Ecosystem Continues Its Upward Momentum
Türkiye’s startup ecosystem demonstrated strong resilience and growth in 2024, outperforming global trends. With increasing international interest, high-profile acquisitions, and major funding rounds, Türkiye continues to solidify its position as a major player in the global startup landscape.
Source: Bloomberght/ Prepared by: İlayda Gök