SINGAPORE, June 15, 2020 /PRNewswire/ -- Tonik Financial Pte Ltd ("tonik") announced today that it closed a $21M round of Series A equity funding. The round was led by blue-chip VC investors Sequoia India and Point72 Ventures, with a significant participation from previous VC investors Insignia and Credence. tonik will use the funding to launch its digital bank in the Philippines, targeting the start of commercial operations in Q3 2020.
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 of tonik, said: "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."
Pete Casella, Head of Fintech Investments at Point72 Ventures, commented: "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."
tonik (www.tonikbank.com) is the first digital-only neobank in the Philippines, on a mission to revolutionize the way money works. It provides deposit, loan, payment, and card products to consumers on a highly secure digital banking platform. tonik is led by a veteran senior team who have previously built and scaled multiple digital and retail banks and fintechs across global emerging markets. Founded in 2018, tonik is launching operationally in 2020 in the Philippines on the basis of its own bank license, with support and R&D functions based in Singapore and Chennai, India.
About Sequoia India
Sequoia helps daring founders build legendary companies, from idea to IPO and beyond. Sequoia India operates in Southeast Asia and India where we actively partner with founders from a wide range of companies, across categories, including BYJUs, Carousell, Druva, GO-JEK, OYO Rooms, Tokopedia, Truecaller, Zilingo, Zomato and more.
We spur founders to push the boundaries of what's possible. In partnering with Sequoia, startups benefit from 48 years of tribal knowledge and lessons learned working with companies like Airbnb, Alibaba, Apple, Dropbox, Google, JD.com, LinkedIn, Meituan and Stripe early on.
From the beginning, non-profits have been the backbone of our LP base, which means founders' accomplishments make a meaningful difference. The majority of our profits are returned to great causes, like the Ford Foundation, Mayo Clinic and MIT. For more information on Sequoia's work in India and SE Asia, visit sequoiacap.com/india.
About Point72 Ventures
Point72 Ventures is a global venture capital firm led by a diverse set of domain experts with the capital to lead rounds through all stages of a company's growth. The firm invests primarily in Fintech, AI/ML, and Enterprise technologies. As an independent arm of Point72, the global asset management firm led by Steven A. Cohen, Point72 Ventures offers well-informed insights into the global economy. Point72 Ventures has offices in New York City, Palo Alto, California, and Stamford, Connecticut. For more information, visit their website at http://p72.vc/.