On a mission to revolutionize the way companies collect payments in Latin America, Toku, the platform optimizing collections for subscription companies, announced today that it has raised USD $7 million.
The funding round was led by North American venture capital firm F-Prime Capital, accompanied by Wollef, Honey Island by 4UM and existing investors FundersClub and Clocktower. Individual investors such as Matías Muchnik (NotCo), Sebastián Kreis (Xepelin), Santiago Lira (Buk) and Daniel Guajardo (HealthAtom) also participated in the round. With the new injection of funding, Toku moves one step forward towards serving the 50,000 companies throughout Latin America and reaching over 100 million final consumers.
“The payment landscape in LatAm is highly fragmented, with 38 countries using their own payment infrastructure and over 39 currencies. Alongside fraud in the region, a major issue, payment acceptance rates are as low as 30% in some countries”, said Rocio Wu, Principal at F-Prime Capital. “Toku’s innovative technology streamlines payment options and provides a vertically-integrated SaaS solution for companies to charge more efficiently, and with greater control. Their digital, cost-effective solution makes Toku a promising player in the region’s payments orchestration space, paving the way for LatAm businesses to accelerate digital transformation. As account-to-account transfers make headway across LatAm in the form of real-time payments platforms like Pix, SPEI and Transfiya, the recurring billing value proposition will become even more attractive”.
Toku was founded in 2020 with the aim of providing subscription companies with a streamlined, intelligent software solution for collection management. The platform offers companies full control over their collection process, including the ability to use their own brand image and offer a comprehensive payment solution to their customers. In just over a year, Toku has grown significantly, increasing its revenue by over 7 times, and opening a new market in Mexico.
“With this latest investment, we are poised to continue revolutionizing the way companies collect payments in Latin America, with a goal of serving 50,000 companies and more than 100 million customers,” said Cristina Etcheberry, Co-Founder & CEO. “Our main focus for investment and expansion is in Mexico, one of our most important markets. We’ll be developing new offerings, improving existing products, and reaching new customers, as well as hiring more talent. We’re also preparing to open new markets in Brazil, Colombia, and Peru, and will begin a discovery process in new countries throughout the region.”
Renowned companies such as Security SAT and Essbio have already adopted Toku’s solutions with great results. Security SAT reduced its payment rejection rate by 80%, while Essbio increased its automatic payment enrollment by 72% after using Toku’s services.
At Toku, the development, product, and sales teams work together to break down barriers and create a more democratic approach to development. This collaborative culture has allowed the company to bring new products to market more quickly, respond to customer needs more effectively, and create a more engaging work environment for its employees. By embracing a culture of experimentation and openness, Toku has set itself apart from its competitors and has established itself as a company that is committed to creating innovative solutions that meet the needs of its customers.