Korean FinTech service Toss has acquired mobility startup service Tada. Korean unicorn startup Viva Republica, the operator of Toss app, has signed a memorandum of understanding (MOU) to acquire a 60% stake in VCNC, the startup operating Tada, owned by Socar.
Combining mobility and FinTech
The acquisition will take place so that Tada issues new shares and Toss acquires them, and the amount invested by Toss will all be used for Tada’s growth. Toss and Socar aim to create new value that combines mobility and fintech. Through close cooperation in the future, Toss and Socar will jointly provide extended membership services and various benefits to 20 million Toss customers and 9 million Socar-Tada customers. It is expected that the ecosystem of
Toss representative said about the acquisition, “Through the acquisition of Tada, our strategy is to continue sound growth and innovation by expanding the scope of financial business such as Toss payment and broadening the choice of mobility service users and industry workers.” The two companies plan to finalize the stock acquisition contract by the end of the month in such a way that Toss will take over all Tada new shares.
A company official said, “All of the amount invested by Toss will be used for Tada’s growth.” The Tada brand and CEO Lee Jeong-haeng will remain the same. “The domestic taxi market is worth about 12 trillion won based on annual sales,” said Seung-Gun Lee, CEO of Toss. Park Jae-wook, CEO of Socar, said, “We are taking on a new challenge in partnership with Toss, which is leading financial innovation.
Tada is currently operating ‘Tada Light’, a private and corporate taxi platform franchise business. The van call service was introduced in 2018 and made a name for itself, but in April 2020, the service was suspended due to the revision of the Passenger Car Transportation Business Act, which was called the ‘Tada Ban Act’.