Chile’s Toku raised $7.15 million in a seed round to expand digital collection services in Latin America.
The fintech will apply the funds to enhance its current strategy in Mexico while it eyes new expansions in the region.
The investment round was led by U.S. venture capital firm F-Prime Capital and was accompanied by Wollef, Honey Island by 4UM, and existing investors FundersClub and Clocktower.
The startup seeks to streamline collection management through a software-as-a-service model for subscription-based companies. Toku was founded in 2020 and had since then expanded to Mexico.
“Our main focus for investment and expansion is in Mexico, one of our most important markets,” said Cristina Etcheberry, Co-Founder and CEO. “We’ll be developing new offerings, improving existing products, and reaching new customers, as well as hiring more talent.”
The co-founder also said Toku was exploring expanding to new markets. These include Brazil, Colombia, and Peru, where alternative payments have seen notable traction lately.
Highly fragmented market
As new payment methods expand in Latin America, the company said the need for a sound collection grows. One of the features Toku offers is account-to-account payments. These transactions go through different rails than the card network, allowing companies to save on commissions. Around 80% cheaper, Toku estimated.
“The payment landscape in LatAm is highly fragmented, with 38 countries using their payment infrastructure and over 39 currencies,” said one of the investors, Rocio Wu, Principal at F-Prime Capital. “As account-to-account transfers make headway across LatAm through real-time payments platforms like Pix, SPEI, and Transfiya, the value proposition will become even more attractive.”
Toku is expanding its headcount
The firm has grown considerably since its inception. They started with a team of eight, and now they have expanded to 70, divided between Chile and Mexico. In an interview with Chilean media, Etcheberry said the firm now processes a payment every 22 seconds.
Also, its digital collection service reduces costs associated with collection by 30%. “A company whose core is not collection should find a financial partner to solve the payment problem. That’s where Toku comes in,” he says.