tonik raises $21M Series A led by Sequoia India and Point72; COVID-19 accelerates adoption of digital banking

Source: IBS Intelligence 2020-06-15

Greg Krasnov, Founder & CEO, tonik

Singapore-based Tonik Financial (tonik) announced today that it closed $21 million in its Series A equity funding round. The round was led by blue-chip VC investors Sequoia India and Point72 Ventures. It saw significant participation from previous VC investors Insignia and Credence, where they had led the funding round announced in February and tonik had closed $6 million to launch in the Philippines in Q3 2020.

tonik will use the current funding too for the launch of its digital bank in the Philippines.

tonik was recently granted its own bank license by the banking regulator in the Philippines. This makes tonik the first digital-only neobank in Southeast Asia and one of the very few globally to be operating on the basis of its own bank license. In the company’s estimates, Philippines represents a US$140 billion retail savings market, and a US$100 billion unsecured consumer lending opportunity. tonik is led by Founder & CEO Greg Krasnov, who had previously incubated four FinTech start-ups in the consumer finance space in Asia, as well as founded, built and successfully exited a significant consumer finance bank in emerging Europe.

Greg Krasnov, Founder & CEO, tonik elucidated, “COVID-19 is causing consumers all over the globe to save more for emergencies, to care more about the safety of their money as well as about earning a fair interest rate on their deposits while having access to their funds for easy withdrawal and transfer. In the Philippines, where over 70% of the population remains unbanked, we are observing a rapid jump in consumer demand for digital banking and digital transfers since the start of the year. We are preparing to bring a highly differentiated experience to the Filipino consumer to address these needs and are honored to be supported in this by the regulators who have encouraged innovation and welcomed technology solutions to bolster financial inclusion.”

According to the FUTURE OF DIGITAL BANKING REPORT 2020 Q1 report by IBS Intelligence, challenger banks do not face legacy technology and outdated processes impediments. These neobanks are here to save the day from bloated incumbents who may have taken their customers for granted for way too long.

Pete Casella, Head of Fintech Investments, Point72 Ventures enunciated, “We believe deeply in tonik’s vision for a digital bank that is underpinned by the customer protections inherent in being a government-approved bank, and also the flexibility of being a completely digital start up. This unique combination will enable tonik to provide truly innovative products to its customers while also capturing the benefit of bank economics.”

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tonik raises $21M Series A led by Sequoia India and Point72; COVID-19 accelerates adoption of digital banking

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