NAGA, led by Octavian Patrascu, has achieved profitability after years of losses through a structural overhaul. This trading platform, which was listed in Frankfurt in 2017, faced a net loss of 37 million euros in 2022, while retail trading volumes had increased during the pandemic.
Investment and Reverse Merger
In 2023, NAGA raised nearly $20 million in new capital through a reverse merger with its brokerage, CAPEX.com (Key Way Group). Patrascu explains that half of this capital is allocated to pay off old debts and the other half for the company's growth. This merger also includes new branding initiatives with personalities such as Mike Tyson and the Bundesliga club Borussia Dortmund.
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Patrascu has invested $9 million of his personal capital in this merger. He states, "Why my own capital? Because I believed in this merger." He further notes that mergers are challenging and require experience and discipline.
Restructuring and Focus on Profitability
Instead of implementing a strict regime, Patrascu has streamlined inefficient processes and focused on underperforming business units. These changes have led to an improvement in the geographical distribution of revenues; now half of NAGA's revenue comes from Europe, the Middle East, and Latin America. The share from Latin America has increased from 5% to 22%.
Patrascu emphasizes that NAGA is currently not seeking new geographical expansion and is focusing on strengthening its current position in existing markets. However, one of the biggest challenges was bridging the cultural gap between NAGA and CAPEX.com. NAGA's fast-paced, Silicon Valley-inspired mindset contrasted with CAPEX.com's operational culture.
Patrascu believes that aligning rapid innovation with a structured operational framework required significant effort. He also mentions investing in an AI team responsible for creating internal and customer-centric tools. NAGA is also developing an AI technology called Citadel that aids in the security and integrity of models.
Additionally, NAGA is looking to develop AI chat support for its customers. Patrascu says, "This will be a big change, and companies need to be ready for it." This feature will also include AI-monitored trading, allowing customers to have separate accounts for funding.
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