Digital bank Tonik raises $131m, eyes international expansion
Tonik Financial, the parent company of Tonik Digital Bank in the Philippines, has closed a $131 million Series B equity funding round.
The round was led by Japanese banking heavyweight Mizuho Bank. Other new investors included Prosus Ventures (formerly Naspers Ventures), the co-founder of DST Partners Rahul Mehta, investment fund Sixteenth Street Capital, and Indonesian family office Nuri Group.
The round also had repeat participation from Sequoia India, Point72 Ventures, Insignia, iGlobe, Alpha JWC, Citius, Blauwpark, and Kraft.
Prior to this, the bank raised $21 million in a Series A round in mid-2020, ahead of its launch.
Tonik opened its virtual doors to customers in March 2021 having secured the first private digital bank licence issued by the country’s regulator, Bangko Sentral ng Pilipinas.
For its technology, it uses Finastra’s Fusion Essence core banking system, Daon for biometric authentication, and FinScore for alternative credit scoring.
It says it “has set new bank growth records in the Philippines” and is “one of the fastest growing neobanks globally” after reaching $20 million in consumer deposits within its first month of operation and $100 million after eight months.
It is now rolling out a range of lending products focused on boosting financial inclusion in the country.
The Philippines represents a $140 billion retail savings market, and a $100 billion unsecured consumer lending opportunity, Tonik estimates.
70% of the country’s population remains unbanked.
Greg Krasnov, founder and CEO of Tonik, says the Mizuho partnership will assist with access to international wholesale funding markets as well as provide “a fantastic platform” for the challenger bank’s future international expansion.
It operates out of hubs in Singapore (HQ), Manila, Chennai, and Kyiv.