Toast, a Singapore-based fintech announced it raising $850,000 in seed funding round led by Aetius Capital along with Transferwise investors, ACE & Company.
Out of the Startupbootcamp FinTech accelerator, Toast is an app that enables users to securely send money abroad without physically going to the remittance agencies to transfer the money. The app can be topped up with money through the local bank transfer, pre-paid scratch cards at Toast’s retail unit or through Nets Flashpay cards at Toast’s self-service machines. The app charges a fixed fee of US$4 per transaction.
Aaron Siwoku, CEO and founder of Toast said, ” We saw many inefficiencies with the way money is sent by overseas workers. This is a local problem prevalent across the world. The reason they are queuing up is because these MTOs are still running a very old-fashioned business model. People queue up, they hand cash over a counter, the cash has to be counted, their ID has to be verified each time they do a transaction, and this creates queues.” So the app serves as means to digitalize the process using the mobile app.
With the funds raised, Toast plans to use it to expand into the large and growing Asian remittance market. Following Singapore, it also plans to open up in additional remittance corridors to countries like Malaysia, Indonesia, India, Bangladesh, Thailand, Nepal and Myanmar.
TOAST’s solution will disrupt the traditional remittance industry by offering Filipino migrant workers a cheaper and more user-friendly solution,” said Steven Tong, Managing director of Startupbootcamp FinTech. “This puts them in a strong position for expansion in the large and growing Asian remittance market, in which the Philippines is the 3rd largest remittance recipient globally, receiving more than US$28 billion in 2014.”