Tonik’s SG-based parent company raises $131M in Mizuho Bank-led Series B funding
Tonik Financial, the parent company of Tonik Digital Bank in the Philippines, announced on February 9 that it has raised $131 million in a Series B equity funding round led by Mizuho Bank, one of the largest Japanese banking groups.
“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,” said Greg Krasnov, Founder & CEO of Tonik.
Daisuke Horiuchi, Managing Executive Officer at Mizuho’s Retail Business Company, meanwhile stated, “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.”
“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,” Horiuchi added.
Participants in the funding round also include 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 venture capital investors Sequoia India, Point72 Ventures, Insignia, iGlobe, Alpha JWC, Citius, Blauwpark, and Kraft.
According to Tonik’s parent company, the funding raised will help accelerate the growth of its digital bank in the Philippines.
Launched in March 2021, Tonik was among the six entities granted a digital banking license by the Bangko Sentral ng Pilipinas (BSP). It has since set new bank growth records in the Philippines as it reached $20 million and $100 million of consumer deposits within the first and eighth months of operations, respectively.
Based on its estimates, Tonik said the Philippines represents a $140 billion retail savings market and a $100 billion unsecured consumer lending opportunity.
Claiming the title of one of the fastest-growing neobanks globally, Tonik now sets its focus 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.
