PH’s first neobank Tonik raises $17m in pre-Series B funding

Manila, Philippines. Photo: David Milmont/unsplash

Tonik, the recently launched first neobank in the Philippines, announced raising $17 million in pre-Series B funding led by Singapore venture capital firm iGlobe Partners.

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.