The funding round was also backed by existing investors Sequoia India, Altara Ventures, and Insignia Ventures as well as new investors Citius, Baring Vostok Capital Partners, and a host of family offices in the Philippines, Tonik said in a statement.
The new funds will be used to accelerate the company’s growth and to invest aggressively to roll out additional lending and payment products, said Tonik CEO and founder Greg Krasnov.
“In the course of the next 12 months, we plan to significantly broaden our stack of first-in-the-market digital financial products for our clients, especially strengthening our offer on payments and rolling out consumer loans,” he added.
The funding round comes two months after Tonik publicly launched in the Philippines. In under one month, the neobank said it secured over $20 million in retail deposits. The fresh capital also brings Tonik’s funds raised to date to $44 million.
In June 2020, Tonik raised $21 million in its Series A funding round co-anchored by Sequoia India and Point72 Ventures. It earlier raised $6 million from Insignia Ventures Partners and Credence Partners.
The launch of the digital bank comes as a positive development for the Philippines, which has largely been bypassed by a surge in digital banking in Asia in recent years. The country represents a $140-billion retail deposit market and a $100-billion unsecured consumer lending opportunity, Tonik earlier said.
Krasnov said earlier that over 70%of the adult population in the Philippines remains unbanked and market research indicates that over 50% of existing bank clients would be keen to switch their deposits to a pure-play digital contender.
“The customer response to our launch was overwhelmingly positive. We are delighted that so many Filipinos are taking advantage of our unique service and attractive deposit rates, to enable them to dream big and save bigger,” Krasnov added.
The neobank offers deposit interest rates of up to 6% per annum, and unique saving features such as its Solo Stash and Group Stash products, as well as Term Deposits. It is supervised by the Bangko Sentral ng Pilipinas, the country’s central bank, and deposits are insured by the Philippine Deposit Insurance Corporation.