Tonik Financial raised US$131 million in a second-round equity funding with Mizuho Bank getting on board along with other significant new investors such as Prosus Ventures (formerly Naspers Ventures), the co-founder of DST Partners Rahul Mehta, Singapore-based Sixteenth Street Capital and Indonesia-based office Nuri Group.
Repeat investors include Sequoia India, Point72 Ventures, Insignia, iGlobe, Alpha JWC, Citius, Blauwpark, and Kraft.
Tonik will use the fresh funds accelerate the growth its subsidiary in the Philippines, Tonik Digital Bank, the first private digital bank to get a license from the Bangko Sentral ng Pilipinas.
Launched in March 2021, Tonik has set new bank growth records in the Philippines by reaching $20 million worth of consumer deposits in its first month of operations, and $100 million in the first eight months.
Tonik Digital Bank is now focused on rolling out a broad range of innovative all-digital consumer lending products aimed at financial inclusion clients — those who have limited or no access to banking services — as well as expanding the value proposition of its Tonik Account offering.
The company estimates that the Philippines represents a $140-billion retail savings market, and a $100-billion unsecured consumer lending opportunity.
“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,” added Kasnov.
Greg Krasnov had previously co-founded multiple other successful fintech companies in Asia, as well as founded and built a leading consumer finance bank in Emerging Europe.
Daisuke Horiuchi, managing executive officer at Mizuho’s Retail Business Company, said that Tonik’s 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,” said Horiuchi. “We are keen to support Tonik’s world-class management in their vision to increase financial inclusion in the region.”