Remittance app Toast secures Singapore licence, S$2m in funding

SINGAPORE — A fintech start-up that allows migrant workers to send money to their home countries has secured US$1.5 million (S$2.09 million) in pre-series A funding and obtained a licence from the Monetary Authority of Singapore to operate as a remittance agent here.

For a start, the firm — Toast — will allow people here to send money via its app to the Philippines.

It intends to add Indonesia, India, Bangladesh, Pakistan and possibly China to its network by end of next year, as Toast looks to provide a more convenient and efficient way for migrant workers to remit money, founder and chief executive Aaron Siwoku told TODAY in an interview.

“The traditional structure for remittance was considered tried and true: Two- to three-hour-long queues and days of waiting for funds to arrive. With a strong global push towards mobile and Web banking, there’s no reason money transfers for the under-banked shouldn’t happen in real time, while simultaneously reducing queues to the point that they are a thing of the past,” he said.

“We plan to do this by first addressing basic issues facing people who are trying to send money back to their families. From there, we will continue to provide innovative solutions to meet their needs and develop Toast into an ever more sophisticated financial services platform for the under-banked.”

Mr Siwoku added that possible services that can be offered to this demographic, which is underserved by banks today, include loans during an emergency.

The latest round of funding, led by Aetius Capital, follows the US$850,000 seed funding that Toast secured about a year ago.

The initial amount allowed the start-up to bring its prototype into a working product, allowing the firm to secure a remittance licence in Hong Kong. Since launching its money transfer app in the city in March, remittances from Hong Kong to the Philippines have grown to more than HK$7 million (S$1.3 million) a month.

In Singapore, the Toast app allows users to transfer money from their bank accounts or direct pay options such as Nets FlashPay.

The firm will also set up a physical store with eight digital stations in Lucky Plaza for users to carry out their transfers.