Digital bank Tonik raises US$6m in round led by Insignia, Credence

TONIK Financial has closed its first institutional round of funding, led by Singapore-based venture capital firms Insignia Ventures Partners and Credence Partners.

The US$6 million round also saw "significant" participation from regional family offices and angel investors, Tonik said in a press statement on Tuesday.

It will use the fresh funds to launch its digital bank in the Philippines, and is targeting to start commercial operations in the third quarter this year.

The Philippines' banking regulator had recently granted the startup a bank licence. "This makes Tonik the first digital bank in South-east Asia and one of the very few globally to be operating on the basis of its own bank licence," Tonik said.

The company is led by founder and chief executive officer Greg Krasnov, who previously co-founded four fintech startups in the consumer finance space in Asia.

In the press statement, Mr Krasnov said that over 70 per cent of the adult population in the Philippines remains unbanked, with market research indicating that more than half of existing bank clients will be keen to switch their deposits to a pure-play digital contender.

The Philippines represents a US$140 billion retail deposit market and a US$100 billion unsecured consumer lending opportunity, according to Tonik.

"We look forward to working with our new investors to improve financial inclusion in the country," Mr Krasnov added.