Parent of Tonik Digital Bank Raises $131 Million in Series B Round
The parent company of the Philippines’ Tonik Digital Bank has raised $131 million (about P6.73 billion) in its Series B funding round. Tonik Financial Pte Ltd said it will use the fresh funds to accelerate the growth of its digital bank in the country.
The round was led by Mizuho Bank, one of the largest Japanese banking groups and a Top 10 bank by assets in the Asia Pacific region and which has been active in the Philippines since 1981. Also participating were Prosus Ventures (formerly Naspers Ventures), the co-founder of DST Partners Rahul Mehta, as well as Singapore investment fund Sixteenth Street Capital, and Indonesian family office Nuri Group.
The round also featured strong repeat participation from previous VC investors Sequoia India, Point72 Ventures, Insignia, iGlobe, Alpha JWC, Citius, Blauwpark, and Kraft.
Tonik is the first purely digital bank granted a license to operate by the Bangko Sentral ng Pilipinas. While the regulator has granted digital banking licenses to legacy banks, such as CIMB and ING, this is the first time it issued one to a neobank, or a financial technology company that offers internet-only services, with no physical branches.
Launched in March 2021, Tonik has set new bank growth records in the Philippines by reaching $20 million and $100 million of consumer deposits within the first and eighth months of operation respectively, laying claim to the title of one of the fastest-growing neobanks globally. The company says it is now focused on rolling out a broad range of innovative all-digital consumer lending products focused on the financial inclusion clients, as well as expanding the value proposition of its Tonik Account offering.
Tonik estimates that the Philippines represents a $140 billion retail savings market, and a $100 billion unsecured consumer lending opportunity. The company is led by founder and CEO Greg Krasnov, who had previously co-founded multiple other successful fintech companies in Asia, as well as founded and built a leading consumer finance bank in Emerging Europe.
“We are very excited to partner with Mizuho, one of the Top 10 banking groups in the Asia-Pacific region,” Krasnov said. “The partnership with Mizuho will provide Tonik with enhanced access to the international wholesale funding markets and world-class managerial talent, as well as serve as a fantastic platform for our future international expansion. All of this will help solidify our market leadership position in driving financial inclusion in Southeast Asia.”
“Tonik’s unique track record so far validates the existence of massive demand for digital banking services in the Philippines, where over 70 percent of the population remains unbanked,” said Daisuke Horiuchi, managing executive officer at Mizuho's Retail Business Company. “As the first mover and market leader, Tonik is well-positioned to grow into one of the largest banks in the Philippines, as well as enter other Southeast Asian markets. We are keen to support Tonik’s world-class management in their vision to increase financial inclusion in the region.”