Korean digital wallet operator raises $173 mn from foreign VC firms
Jung-hwan Hwang
Aug 28, 2020 (Gmt+09:00)
Viva Republica Inc., the operator of South Korea's popular digital wallet Toss, has raised its largest single fundraising worth $173 million from existing foreign investors as the company gears up to diversify its business portfolio, the company said on August 28.
The company is expected to use the hefty funding to set up financial affiliates offering about 40 types of financial services, including online banking, brokerage and insurance.
Participants of the latest fundraising include Aspex Management, Sequoia China, Kleiner Perkins, Altos Ventures, Goodwater Capital, and Greyhound Capital. The recent round of funding has valued the startup at 3.1 trillion won, up from 2.7 trillion won at the end of last year when it received another venture capital investment. Since its inception, Toss has raised 630 billion won for the company.
Industry sources say that Viva Republica’s sizeable funding is impressive given the recent cooling of the VC market due to the coronavirus impact.
“Non-contact fintech businesses such as Toss thrived during the global pandemic crisis, while other startups saw their valuations drop,” said a source from one of the company’s investors. “The company continued to boost its competitive edge by diversifying its portfolio and proved that it has potential for long-term profit,” the source added.
Earlier this month, the company launched its own payment gateway service Toss Payments after acquiring the PG unit from the country's third largest-mobile carrier LG UPlus. Also, the company's insurance unit Toss Insurance has made market headway with its consultant matching services.