Philippines based start-up Tonik Financial has secured US$ 21M in its Series A round in order to kick start its digital bank services next quarter in the Philippines where it estimates to incorporate a USD 140 billion retail savings market.
The latest funding round of the start-up was led by VC firms Sequoia India and Point72 Ventures. Its previous investors Insignia and Credence also participated.
It had secured a bank licence in Philippines in January 2020. The bank licence would enable the start-up to deliver retail banking services, focused mainly on retail deposits and consumer loans.
Tonik Financial is a digital bank that offers retail financial products, savings deposits, current accounts, payments, loans and cards. Being the first digital-only bank in Southeast Asia, the start-up was founded in 2018 by Greg Krasnov and has offices in Singapore and Chennai, India, which houses its support and research teams.
Its CEO Greg Krasnov said, “COVID-19 is causing consumers all around the world 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.” The company is expecting a brisk jump in consumer demand for digital banking and digital transfers.
Tonik Financial’s ability to secure a bank licence as a digital-only bank is indeed unique and would allow them to supply innovative products while tapping the benefit of bank economics.