Philippines digital bank operator Tonik Financial raises US$131m in Series B round led by Mizuho Bank

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TONIK Financial has raised US$131 million in Series B funding led by Mizuho Bank and new investors including Prosus Ventures, Sixteenth Street Capital and Indonesian family office Nuri Group.

The fintech startup, which operates Tonik Digital Bank in the Philippines, also had existing investors such as Sequoia India, Point71 Ventures, insignia, iGlobe and AlphaJWC join the funding round.

The digital bank has hit milestones of US$20 million of customer deposits in the first month and US$100 million in the eighth month of operations. According to Tonik's estimates, the Philippines has a US$140 billion retail savings market and a US$100 billion unsecured consumer lending market, of which the digital bank is looking to take a slice of.

"Tonik's unique track record so far validates the existence of massive demand for digital banking services in the Philippines, where over 70 per cent 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 South-east Asian markets," said Daisuke Horiuchi, managing executive officer of Mizuho's Retail Business Company.

The funding will be used to accelerate the growth of Tonik Digital Bank in the Philippines.

"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 chief executive of Tonik.

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