Korea’s Viva Republica raises $40m

The bridge round is being touted as the first Korean investment by both GIC and Sequoia China. It is expected support strategic acquisitions and product development.

According to a statement, Viva’s flagship product, a mobile money transfer service known as Toss, has doubled its user base in the past year to more than eight million subscribers. Monthly transactions through the app are now said to amount to about KRW1.2 trillion ($1.1 billion).

Toss aims to facilitate Korea’s complicated digital money transfer procedures, which are known to require dozens of clicks and several password checks even for transactions as small as $10. The app claims to allow for transfers in excess of $400 with only three steps.

Other products include Toss Loans, an app that provides credit rating validation services in order to improve microloan access; and Toss Finance Dashboard, which allows users to identify patterns and troubleshoot problems in their personal finances by organizing comprehensive transaction histories.

Viva received a KRW55 billion Series C last year led by Goodwater Capital with participation from Bessemer Venture Partners, Altos Ventures, Partech Ventures, and PayPal, which owns Venmo, a similar product to Toss. It received a $23.7 million Series B the prior year from Goodwater, Altos, Qualcomm Ventures, and KTB Network.

Korea’s fintech space is considered relatively nascent but quickly accelerating despite challenges around high fragmentation and laws that prevent merchants from retaining credit card details. P2P transfer has emerged as a key driver of the ecosystem although the segment is perceived to be troubled by rising defaults and arrears.

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• Topics
• North Asia
• Financials
• Technology
• Expansion
• South Korea
• GIC Private
• Sequoia Capital
• Growth capital
• Financial Services