Adtech Magfi raises $1.1M in round led by Eleven Ventures

Magfi, a SaaS that enables simultaneous advertising across Telegram and Discord communities through machine learning and AI technologies, has secured $1.1M in Seed funding. The round is led by the Bulgarian-based fund Eleven Ventures, renowned for its investments in unicorns like Payhawk. Svetozar Georgiev from Eleven Ventures will join the Magfi board, bringing valuable expertise to support the company's growth.

Telegram and Discord boast nearly 1.5 billion users monthly, with users congregating in groups based on specific topics. Before Magfi, group admins manually sought out advertisers to share ads and generate income. Advertisers struggled to access this vast user base and target ads effectively and at scale. Magfi's solution dramatically simplifies the ad placement process, allowing advertisers to target the most relevant groups with rich and interactive ads, all within the chat context of the group. The platform brings huge value to group owners, too, who can now offer inventory and get relevant advertisers with no effort, focusing instead on growing their community and improving the quality of the group.

Magfi has already shared over 1 million ads across channels with thousands of subscribers covering niche topics like Sports, Finance, News, Video Gaming, and more. The platform reaches 600,000 unique users daily, demonstrating its significant reach and impact. Within just a year following its pre-seed investment, Magfi has increased its initial revenue of 4 digits by 25 times. Its diverse customer base includes fast-growing and multinational companies such as major banks in Turkey, global e-commerce firms, and world-renowned advertising agencies.

With this new investment, Magfi plans to expand its team for more aggressive growth. The company aims to fully automate its processes and systems, from onboarding, to support to ad optimization. Expanding its operations beyond Turkey is a priority, with Brazil, a market of 220 million people and 50% Telegram usage, being the next target. Magfi seeks to bring the same level of the sophistication and effectiveness of popular social media advertising platforms, but to the world of chat-based communities. 

Svetozar Georgiev, a Partner of Eleven Ventures, said, “Advertising on decentralized chaт-based communities is a Blue Ocean market, where Magfi has a head start. Unlike traditional social media, the dynamics here are somehow 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 in this journey.” 

Mustafa Fikret Uğur, CEO and co-founder at Magfi, said, “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 in the communities on these platforms, and at Magfi, we are unlocking that potential. Brands can now reach audiences they couldn't access before by targeting highly relevant ads through Magfi Ads in 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 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 using generative AI technologies to create ad creatives tailored for each community."