DIGITAL-ONLY bank Tonik Financial has closed a US$21 million Series A funding round led by venture capital (VC) investors Sequoia India and Point72 Ventures.
The funding round also saw "significant participation" from previous investors Insignia Ventures Partners, and Credence Partners, the company said on Monday.
This comes after Tonik in February announced that it had bagged US$6 million in its first institutional round of funding, led by Singapore-based VC firms Insignia and Credence.
Tonik provides deposit, loan, payment, and card products to consumers on a digital banking platform. Founded in 2018, Tonik also has support and research and development functions based in Singapore and India.
The startup said it will use the fresh funds to launch its digital bank in the Philippines, with commercial operations targeted to begin in the third quarter this year. Tonik has been granted its own bank licence by the banking regulator in the Philippines.
According to Tonik's estimates, the Philippines represents a US$140 billion retail savings market, and a US$100 billion unsecured consumer lending opportunity.
Greg Krasnov, founder and chief executive 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 per cent 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."
Pete Casella, head of fintech investments at Point72 Ventures, said: "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 startup."