Toss

Executive Summary

Viva Republica, which does business under the name Toss, has grown from a simple service for sending money into the top digital financial platform in South Korea with more than 23 million monthly active users. The company uses its single app to provide bank accounts, stock trading, and insurance coverage. It now brings in $750 million in yearly revenue because it has quickly increased its total customer deposits and the amount of money it lends. Even though the company holds a strong position in the market and successfully sells multiple different services to the same person, the business is still losing money. It reported a $100 million net loss because it spends a lot of cash to gain new customers and needs large amounts of capital to run its bank. Toss faces tough competition from other apps like Kakao Pay and Naver Pay while also dealing with government oversight from the Korean Financial Services Commission. While the company is getting close to the point where its daily operations pay for themselves, investors need to see if the firm can turn its banking and stock trading services into long-term profit makers. The upcoming sale of stock to the public will be a major test for how people value fast-growing Asian financial apps that work under strict laws. The company's main advantage is that its app is very easy to use, which makes it hard for its massive group of users to switch to a different service provider.