South Korean digital lender Toss Bank is weighing a major new funding round with a possible valuation of $3 billion, according to sources close to the situation. The Seoul-based firm is seeking $300 million to $500 million and is working with a financial advisor to make it happen. Existing and new investors are interested in the round and Toss Bank is aiming for a $2 billion to $3 billion valuation, the people stated.

The Toss brand is a financial technology firm founded in 2013 by Lee Seung-gun, a dentist-turned-entrepreneur. The platform offers more than 50 financial services including payments, credit scoring, securities trading and insurance, and has over 22 million subscribers. It recently established a new digital banking service, Toss Bank, and since receiving its internet banking license in 2021, it has accrued 6 million customers to date (March 27, 2022).

Toss Bank is looking to use the new funds to boost its growth, although the exact details of the round remain fluid. Despite a net loss of $202 million in 2022, the firm anticipates that it will enter the black in the second half of this year. In the meantime, Lee Seung-gun is spearheading the firm’s expansion, backed by the wealth of experience he gained while running a dental practice.

In addition to its own fundraising efforts, Toss Bank is reportedly considering seeking investments from foreign investors, though nothing has been finalized yet. The company’s digital banking services are set to face stiff competition from traditional rivals like KB Financial Group, as well as internet-only challengers like Kakao Bank. In any case, the $3 billion funding round could provide key support to the firm’s ambitions to become one of the most successful digital lenders in the country.