Founded in 2015 and operated by South Korean fintech Viva Republica, Toss leverages user engagement data to offer a variety of financial services. These services include one-stop internet banking and transactions focused on creating efficiencies within peer-to-peer payment and digital banking. Toss users can view all their accounts in one place and access and manage credit, loans, insurance, investment and more from their financial services providers. The simplicity and accessibility of the banking service is a key reason for its popularity, with over 17 million users benefiting from its use. It is reported that the fintech nets 1 million new users every quarter.
Viva Republica has closed yet another successful funding round, led by key existing investors including Aspex Management, Sequoia Capital China, Kleiner Perkins, Digital Growth Fund, Altos Ventures, Goldwater Capital, and Greyhound Capital. This marks the largest single investment raised since 2013, amidst the global market instability created by COVID-19.
The $173 million round contributes to the total of $560 million raised to date, valuing the fintech at $2.6 billion and cementing its status as the undisputed fintech leader in South Korea. The success of this round now positions the leading fintech to target its goal of becoming a one-stop app for all financial needs. Without many details disclosed on what the funding will be used for, founder and CEO Seung-Gun Lee did share that the company is “building a financial super app fundamentally innovating across every facet of consumer finance.” “We believe this funding round has brought us a step closer to reaching our goal and we will continue to dedicate our efforts until we revolutionize all financial activities within everyday lives through Toss,” said Lee.
In 2019, the company secured state approval to launch South Korea’s third internet-only bank, as well as acquire a securities brokerage license and the payments business unit of LG Uplus (L GU+), the South Korean mobile carrier. Toss is the first and only company issued a new securities brokerage license in over ten years in South Korea. This license will enable the company to disrupt the loan market. With 11 insurance partners as of April 2020, Toss users are able to seek phone consultation in order to find the best products for them.
While the company has over 600 employees, since its expansion, it intends to hire an additional 500 by the end of the year in an eager talent hunt to tackle its immense growth.