Korean unicorn Viva Republica, the operator of the widely popular financial app Toss, has achieved its first annual net profit in 2024, marking a significant milestone in its 11-year history. The company recorded a net profit of 21.3 billion won (USD 1.46 million approx.), a stark turnaround from years of financial losses. This success is attributed to the strong performance of its major affiliates, Toss Securities and Toss Bank, alongside continued growth in its core businesses such as advertising and payments.
Toss Bank’s Profitability Milestone
Toss Bank, which launched in October 2021 as South Korea’s third internet-only bank, has also recorded its first annual surplus. The bank posted a net profit of 45.7 billion won (USD 31.3) in 2024, a significant improvement from its net loss of 17.5 billion won (USD 12 million) in 2023. This turnaround highlights the bank’s ability to achieve financial stability despite challenges such as high interest rates and economic uncertainty.
Toss Bank’s total assets reached approximately 29.7 trillion won (USD 20.9 billion) by the end of 2024, reflecting an increase of 4 trillion won (USD 2.7 billion) from the previous year. The number of customers grew by 32.6%, reaching 11.78 million users. Additionally, its deposit balance surged to 27.5 trillion won. (USD 18.8 billion), while its loan balance stood at 14.6 trillion won (USD 10.02 billion). The balance of monthly rent deposit loans also saw substantial growth, rising 575% year-over-year to 2.3 trillion won (USD 1.5 billion).
Toss Securities’ Strong Growth
Toss Securities, another key affiliate, reported a net profit of 131.5 billion won (USD 90.3 million) in 2024, reinforcing its position as a profitable entity within the Toss ecosystem. The securities arm benefited from increased commission income from stock trading and higher foreign exchange fee revenue, more than doubling its annual revenue to 426.6 billion won (USD 293 million). Toss Securities has maintained steady performance improvements since it turned profitable in 2023.
The Road to Profitability
Toss initially launched in 2015 as South Korea’s first easy-to-use smartphone remittance service, revolutionizing the way individuals transferred money. Over the years, the company expanded its offerings, venturing into securities, banking, and digital payments. The ‘one-app strategy,’ integrating all its financial services into a single ecosystem, has been a key driver of growth, attracting 24.8 million monthly active users (MAU) by the end of 2024.
Eunmi Lee, CEO of Toss Bank, said, “Toss Bank’s success in achieving its first annual surplus in 2024 proves to the market that it has laid the foundation for sustainable innovation through quantitative and qualitative growth.”
Despite its success, Toss faces challenges, including regulatory hurdles that limit the growth of Toss Bank’s household loans. Additionally, concerns have emerged regarding increasing advertising within the app, with some users expressing dissatisfaction over excessive promotional content.
With a firm financial foundation in place, Toss is now setting its sights on global expansion. The company has announced plans to evolve into a “global super app,” aiming for foreign users to make up half of its customer base. Furthermore, it is preparing for an initial public offering (IPO) in the US stock market, signaling its ambition to become a global fintech powerhouse.
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