Toss – Viva Republica

Seoul-based fintech company Viva Republica (the developer of Toss), a super app with more than 40 financial services, raised US$ 410 million at a post-money valuation of US$ 7.4 billion on 23 June 2021.

Investors: The funding round was led by Alkeon Capital, an American investment firm, with participation from new investors like Korea Development Bank, and previous investors Altos Ventures and Greyhound Capital.

Purpose of the funding: The company is planning to launch Toss Bank, a neobank, in September 2021. It will also utilize the funding to continue its expansion in overseas markets, including Vietnam.

About Toss

Toss

Founded in 2011 by Seunggun Lee, Toss is a South Korea-based mobile financial service platform operated by fintech startup Viva Republica. It offers peer-to-peer money transfers, manages credit scores and bank accounts, access loan and insurance plans, split bill options, QR payment and other similar services that enable users to manage their finances. Viva Republica hit unicorn status in 2018.

Toss Bank, which will be launched in September, will focus on lending, and also offer savings accounts with competitive interest rates. Toss Bank claims that it will be able to offer better rates because its risk-scoring model leverages data from its millions of users. It claims to have a total of 20 million users, out of which 11 million are monthly active users.

Toss is also used by merchants to send and receive online payments and manage their business finances. Other features include budgeting tools, bill payments, credit score tracker and insurance plans.

Toss was launched by Viva Republica in Vietnam, its first international market, in 2020. Toss claims more than 3 million monthly active users from Vietnam. The company is planning to enter other Southeast Asian markets too.

What the CEO has to say: “A lot of challenger banks and neobanks are focusing on the banking experience, such as cards, so their main revenue source is interchange fees. Toss is quite different because we already cover all that. We cover P2P payment, money transfer, cards and all sorts of services. So, we are focusing on loans, unsecured loans, mortgages, all sorts of loans. We are going to use this vehicle to give the most competitive interest rates to users, and Toss Bank will not have a separate app, since we have super app strategy.” – Seunggun Lee. 

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Komal writes about the startup ecosystem on VCBay. She is an Economics Hons. graduate from Miranda House, Delhi University, and is passionate about the world of entrepreneurship and finance.

1 COMMENT

  1. […] According to VC Bay News, Toss has been expanded to include a total of forty different financial services through a single platform. We were impressed to discover that the developers were able to pack so much into one convenient app. It is now referred to as a “Super App” by the founder of the company. He has gone over and above in his fervor to improve the financial services for South Koreans. Lee has accomplished something that no other private citizen has been able to do in the known history of the company. […]

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