Tonik Financial Pte Ltd (Tonik), the parent company of Tonik Digital Bank in the Philippines, announced today that it closed a $131 million round of Series B equity funding. The round was led by Mizuho Bank, which is one of the largest Japanese banking groups and a top 10 bank by assets in the Asia Pacific region and active in the Philippines since 1981.
Other new investors in the round include Prosus Ventures (formerly Naspers Ventures), the co-founder of DST Partners Rahul Mehta, as well as a 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 will use the Series B funding to accelerate the growth of its digital bank in the Philippines.
“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,” said Greg Krasnov, founder and CEO of Tonik. “All of this will help solidify our market leadership position in driving financial inclusion in Southeast Asia.”
Launched in March 2021, Tonik just reached $20 million and $100 million of consumer deposits within the first and eighth months of operation respectively achieving the status of one of the fastest-growing neobanks globally. 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 operates on the basis of the first private digital bank license granted by the banking regulator in the Philippines.
In the company’s estimates, the Philippines represents a $140 billion retail savings market and a $100 billion unsecured consumer lending opportunity.
“Tonik’s unique track record so far validates the existence of massive demand for digital banking services in the Philippines, where over 70% 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.”