South Korean financial superapp Toss closes $405M SeriesG as valuation rises to 7%
Viva Republica is a South Korean super app for finance. Toss, which has completed a $405 Million Series G funding, says it now values the company at 9.1 trillion won ( $7 Billion), an increase from the 8.5 billion won it raised in June 2021. $410 million in preSeries F financing at a $7.4 billion (8.5 trillion won) valuation. (South Korea’s currency is This year, the dollar has been depreciated.
Our attention was drawn to the recent funding by the company. This is a sign that the company is doing relatively well in a dark macroeconomic environment. This is not the case. global fintech companiesAll inclusive Klarna, StripeAnd Checkout.comViva Republica raised its valuation after seeing their valuations drop quite drastically in 2022.
Viva Republica went on a bit more of a hiring spree than others in October. global tech companiesAll inclusive fintech startupsThese companies have been undergoing major layoffs in recent years. As of August, the Seoul-based company had approximately 1,900 employees.
Tonic Private Equity, a fintech-focused investor, led Series G along with returning backers such as Altos Ventures (KDB), Goodwater Capital. Greyhound Capital. Aspex Management. Bond Capital. Korea Investment & Securities participated in the latest funding as well. The fintech company announced that it had closed Series G’s first and second closes of approximately $226 Million (295.8 billion won) respectively. This was in the third quarter of 2022. It also closed the third close of the new funding, November.
TechCrunch spoke to Viva Republica Hyunwoo Seo, chief operating officer. She said that profitability is crucial now and as important as growth in these difficult market conditions. The company, which plans to go public in the near future, would benefit from profitability.
To achieve this end, Toss intends to use the proceeds from its latest fundraise for investments in its products. These include digital lending and online payments service for individuals as well as local merchants.
Toss will also use the capital to help accelerate growth of the challenger bank Toss BankVia Republica launched this product last year An app that allows you to invest in retail like Robinhood. Toss SecuritiesAccording to Seo, both companies are looking to make a profit next year.
According to the company, Toss Securities started a turnaround in 3Q22. Toss Bank’s registered users have risen to five million, from 1.1 million in December 2021 when it was launched.
Seo declined to answer questions about the IPO plan. However, previous media outlets have reported that Viva Republica plans to go public within four years of increasing its revenues by 2025.
Founded by dentist-turned-entrepreneur Seung-gun Lee, CEO of Viva Republica, the company started as a money-transfer app, Toss, in 2015. Toss joined the unicorn club with its $80 million financing at a valuation of $ 1.2 billion in 2018.
The app has evolved to become a financial super app, adding new features such as mobile banking, P2P lending, and mobile-based financing. stock trading and investingCredit scoring service, insurance, and insurance. Tosss has launched a buy now, pay later (BNPL), service in March. It claims that more than 1,000,000 users have registered for the service. The South Korean BNLP Gross Merchandise Valu (GMV), is expected to increase by about $36.6 billion by 2028BNPL will be used as a marketing tool by fintech and ecommerce firms to increase their revenues, which could reach $5.6 billion by 2021.
Viva Republica claims that it holds the largest market share in the country with its fintech superapp, with 24 million users registered for Toss and fourteen MAUs as at August this year.
Viva Republica continues to move forward with its acquisitions. The startup was founded Toss PaymentsTwo years ago, a payment gateway business was acquired by LG’s mobile network company LG U+. This allows local merchants to accept electronic payment. In November, Toss Payments’ monthly trading volume exceeded $ 2.7 Billion. Toss also acquired Merchant Korea (a mobile virtual network operator) in July. The company plans to offer wireless communication services for consumers in 2023. This latest acquisition is eight months after Toss acquired a 60% share in VCNC, the operator of the Korean ride-hailing service Tada. SoCar will own the remaining 60% in October 2021, to enter the mobility market.
Viva Republica might make equity investments into global companies in order to expand its international growth strategy. Viva Republica will be entering Vietnam in 2019 and could do so after entering Vietnam. Seo said that it would be more likely to concentrate on domestic business for the moment.
According to company, Viva Republica will post approximately 1 trillion won ($767 million) in revenue next fiscal year.