South Korean fintech company Toss is expected to achieve its first annual profit in 10 years since its founding in 2013. Strong performances from Toss Bank, Toss Securities, and its commerce services have driven this success. Building on this momentum, the company plans to go public on the U.S. stock market later this year.
According to industry sources on Jan. 9, Viva Republica, Toss’s operating company, has recently confirmed internally that it recorded its first annual profit last year. After posting a net loss of 216.6 billion won in 2023, the company reduced its first-quarter loss from 18.3 billion won to just 1.9 billion won in the second quarter. It subsequently achieved quarterly profits in both the third and fourth quarters, expecting an annual profit.
Toss’s strong performance can be attributed to its commerce services, advertising revenue, and growth in Toss Securities. The commerce services within the Toss app, featuring live shopping and group buying, have led users to engage with Toss Pay, the company’s seamless payment service. This has increased app usage time and provided advertising opportunities for online sellers, which in turn boosted Toss’s revenue and profitability.
Toss Securities grew by catering to the younger generation, familiar with non-face-to-face services, and offering a convenient investment environment for retail investors trading overseas stocks. Leveraging its mobile-first approach, Toss Securities enhanced its mobile trading system (MTS) and expanded services such as stock accumulation, attracting more users. Other affiliates like Toss Insurance also contributed to the company’s financial turnaround, alongside growth in advertising, simple payment, and loan brokerage services.
Toss Bank also influenced last year’s results. Due to the regulatory separation of banking and industrial capital, Toss holds a 28.42% stake in Toss Bank, which is below the 30% threshold. While the bank’s revenue is not included in Toss’s earnings, its profit and loss are reflected through the equity method.
Toss’s monthly active users (MAU) surpassed 19 million last year, significantly outpacing KakaoBank (17.3 million) and other financial platforms. The super apps of major financial groups (KB, Shinhan, Hana, Woori, NH) collectively have 7.39 million MAU, with KB Financial’s KB Star Banking app leading at around 12.6 million.
This year, Toss is preparing for a U.S. IPO, focusing on its current services. While the lead underwriter has not yet been selected, global investment banks such as Goldman Sachs and Morgan Stanley, which led the U.S. listings of Korean companies like Coupang and Webtoon Entertainment, are among the candidates. To support this effort, Toss is conducting large-scale recruitment across all departments.
Toss’s enterprise value has increased with this performance, raising the likelihood of a successful IPO. According to Stockplus Unlisted, Viva Republica’s current valuation is estimated between 12 trillion and 20 trillion won.
