By
Steve Muchoki
February 9th, 2024
With the conclusion of its latest funding, Toss plans to grow further its suite of services, including Toss Bank and Toss Securities.
South Korean finance super app Toss has concluded a Series G funding worth $405 million and is now reportedly worth 9.1 trillion won, or $7.1 billion. This development marks a substantial rise in company valuation from 8.5 trillion won in June last year when Toss’ operator Viva Republica raised $410 million in pre-Series G funding. Although the value of the won during June 2021’s funding exercise, at 8.5 trillion, is lower than the latest won figure at 9.1 trillion, last year’s dollar amount stands higher. This is due to the depreciated value of South Korea’s currency against the dollar this year.
Fintech-inclined investor Tonic Private Equity led the latest Toss funding round alongside many returning backers. These included Altos Ventures, Goodwater Capital, Korea Development Bank (KDB), Aspex Management, Greyhound Capital, DUMAC, and Bond Capital. Additionally, the Series G also saw participation from Seoul-based investment bank Korea Investment & Securities.
According to Toss, it previously completed the first and second closes in the third quarter of this year. During this time, the Korean mobile financial services platform and aggregator generated close to $226 million, or 295.8 billion won, and $175.8 million, or 229.3 billion won, respectively. Furthermore, Toss said it concluded the third close of the latest funding in November 2022.
Chief operating officer of Viva Republica Hyunwoo Seo provided future projections for Toss following its most recent funding phase. Seo cited profitability and significant growth as instrumental for the Korean financial services app, especially in the current turbulent market conditions. Furthermore, profitability for Toss would also go a long way in aiding the company’s plans to ease into a publicly-traded company successfully.
Toss to Expand Operations & Services with Funding Proceeds
With the new funds, Toss intends to invest in its products, which include digital lending and online payment services. The company looks to tailor these services to specifically cater to the requirements and needs of individuals and local merchants.
In addition, Toss seeks to channel some of the fresh capital toward growth acceleration for the challenger bank, Toss Bank. The platform was launched in 2021 by Viva Republica to grow the company’s portfolio of services.
Lastly, Toss would also accelerate growth for Toss Securities, which is its retail investment app akin to Robinhood (NASDAQ: HOOD). According to Seo, Toss Bank and Toss Securities are expected to become profitable in 2023.
Funding Indicates Company Buoyancy amid Contracting Tech Space
The latest Series G funding value signals that Toss is doing comparatively well so far despite the bleak economic outlook. In addition, the company boosted its valuation while its global contemporaries, including Stripe and Klarna, experienced sizable drawdowns to their market cap this year.
Toss operator Viva Republica also spent significantly more than its global contemporaries in October. By contrast, several global fintech platforms, including tech startups, have drastically cut costs in 2022 amid the contracting tech space. Some of these cost-saving measures include slashing guidance and budgets and downsizing headcount.