Toku, an emerging account receivable software as a service (SaaS) platform, has recently completed a significant funding round, raising $48 million in Series A financing. This milestone not only establishes Toku's total funding at $55 million, but it also sets a benchmark as the largest Series A round ever led by a female founder in Latin America.
"Latin America still heavily relies on manual and inefficient payment collection processes, creating challenges for businesses and frustrating customers," said Cristina Etcheberry, CEO of Toku. Her leadership reflects a commitment to transforming the region's payment landscape by addressing these persistent issues.
The funding round was spearheaded by Oak HC/FT, marking their fourth investment in Latin American fintech over the last three years. Participating in the round were notable existing investors such as Gradient Ventures, F-Prime, Clocktower, Y Combinator, and Honey Island by 4UM. With this backing, Toku aims to fortify its existing market presence while advancing product development.
"Mid-to-large enterprises in Latin America are navigating high operational costs, complex payment infrastructures, and increasing delinquency rates," said Allen Miller, Partner at Oak HC/FT. His observation underscores the challenges faced by businesses in the region, and he emphasized Toku's role in addressing these pain points: "Toku is empowering businesses across diverse industries with its seamless, world-class payment technology."
Toku's suite of services streamlines the relationship between companies’ enterprise resource planning (ERP) systems and banks, facilitating payment orchestration and automating collections. The software boasts customizable payment portals and optimized collection strategies, elevating automated payment methods in a region where such practices are historically low. Toku helps increase this automation from 10% to a remarkable 90%, thereby driving substantial revenue growth for its clients.
"We aim to provide peace of mind, acting as a trusted partner that safeguards our clients’ revenue streams,” Etcheberry stated. "By enabling businesses to focus on their core operations without added payment concerns, we help them achieve their goals."
The company has its sights set primarily on Mexico, Brazil, and Chile, catering to mid-market and enterprise clients across various sectors, including insurance, credit, education, real estate, and utilities. Toku’s operational capabilities extend to managing collections in the range of $10 million to $10 billion, positioning it as a significant player in the fintech space.
Since its inception in 2020, Toku has experienced rapid expansion, currently employing over 150 staff and serving over 450 enterprises, which include well-known names like Chevrolet, Mapfre, Liverpool, and MetLife. Etcheberry's vision is bold; she aims to impact over 100 million people in the coming years.
"These outdated methods lead to high delinquency rates and unnecessary friction. This latest investment round further validates the demand for Toku’s solutions, and we are excited to bring our technology to even more companies and regions," added Etcheberry, emphasizing Toku's mission to replace outdated processes with efficient solutions.
In 2024, Toku experienced remarkable growth, doubling its revenue, tripling its total payment volume (TPV), and achieving an impressive 160% net dollar retention. These achievements not only showcase Toku's operational effectiveness but also indicate a strong market appetite for innovative financial solutions.
With this latest funding injection, Toku aims to refine its go-to-market strategy further and enhance its offerings to better serve the ever-evolving needs of enterprises across Latin America. The commitment to improving payment experiences is not just a business strategy for Toku; it is central to their mission to aid Latin American enterprises in overcoming financial inefficiencies, paving the way for future growth in the region.