When they meet, Zoe Ocampo, Jules Jurado, and Frederic Levy, who are avid collectors, used to share their stories of acquiring rare items (collectibles) and often getting scammed with fake items.
The trio, who had earlier worked at Filipino payment giant GCash in different roles, wanted to do something about this.
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“The process of collecting rare finds and making transactions are highly fragmented, requiring navigation across four to five platforms to purchase a single item. This process needs more transparency regarding the seller’s identity. In addition, collectors often get no assurance of receiving the exact item purchased, presenting significant trust and security concerns. We saw an opportunity to structure and grow the massive collectible market by addressing these critical pain points,” says Levy.
This landed them on the concept of Toki.
A highly curated marketplace
Launched in November 2023, Toki is a social commerce platform in the Philippines dedicated to collectibles, encompassing the features of a marketplace and a livestream auction.
It is a meticulously curated platform, not an open marketplace. This means each potential seller is thoroughly vetted before being onboarded to ensure legitimacy.
To date, Toki has onboarded 100 curated sellers who rank among the top 30 sellers/resellers in their respective categories. “Key criteria in the evaluation process of the sellers include the history of their operations, sales track record, inventory depth, reputation within the community, and supply chain integrity. In some instances, our team visits their warehouses for ocular,” Levy shares.
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In some cases, Toki has retrieved sellers’ existing sales volumes and online/offline segregation. Moreover, since most transactions occur through Facebook groups or FB Market, the startup can recover some of the sales volumes for the most active sellers and then extrapolate the total volume. “Cross-referenced with other information, we have been able to establish a ranking of the main sellers for each of our categories,” he says.
Currently, Toki offers over 70,000 authentic items across its initial four categories: LEGO, Sports Cards, Sneakers, and Funko. Starting Q1 2024, it plans to expand into new categories, such as Trading Cards (e.g., Pokemon, One Piece, Magic: The Gathering, Flesh & Blood, Lorcana, Marvel, etc.) and Art Toys & Figures (e.g., Blind Boxes, Figures, Action Figures, etc.). “The goal is to launch ten categories in 2024, catering to a broader spectrum of collectors and enhancing our service offering,” reveals Levy, the CEO.
According to a joint study by Toki and GMO Research, the collectible market in Southeast Asia is currently valued at US$34 billion. It is projected to grow 7.2 per cent through 2026, reaching an expected market size of US$54 billion by 2030.
Nearly half of the population (46 per cent) identifies as collectors in Southeast Asia, Hong Kong, and Taiwan. Among these, 91 per cent have engaged in recommerce, averaging an annual spend of US$200.
Toki pins its hope on this growing market. Indeed, the company has already attracted “thousands of daily visits” to its site. Over half of the buyers have made multiple purchases, with the average unique buyer acquiring about five items monthly.
The livestream auctions are also getting notices. Since launching over 100+ auctions in November 2023, the marketplace claims to have received positive feedback from sellers and buyers. “Our sellers have experienced increased sales velocity through our auction platform, while buyers enjoy the thrill of engaging and bidding. We are developing new engagement-centric features to enhance the fun and interactivity of our auctions for all users,” says Levy.
Trust still remains a key challenge
As for the challenges, trust still tops the list, particularly in developing countries, where buyers and sellers navigate a predominantly unregulated marketplace—ensuring the authenticity of purchases, identifying the sellers, and having avenues for dispute resolution still present significant hurdles. “As the collectibles market emerges as an increasingly significant industry in the region, establishing a foundation of trust is imperative; that’s our main goal,” Levy adds.
Frederic Levy
From collectors’ point of view, logistics poses a significant challenge; any minor damage to the collectable or its packaging can directly affect the item’s value. To address this, Toki has partnered with NinjaVan to develop a bespoke logistics solution tailored for Toki.
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For payments, the company has partnered with top payment providers, such as GCash, Maya, and Xendit to make payments easy. Through these partners, Toki can hold all payments in escrow for the buyer until item verification is completed and they receive their purchase. This ensures that the end-to-end transaction is both seamless and secure.
The startup recently raised US$1.8 million in pre-seed funding from Kaya Founders, Foxmont Capital Partners, and other strategic angels. The capital will be used to improve buyer and seller user experience, expand its operations nationwide, and initiate a series of online activations, particularly events that engage our community.
“We also plan to escalate our marketing endeavours to amplify our reach and impact. A key focus will be forging more collaborations with artists to develop unique, exclusive products,” he says.
Exploring international growth is on Toki’s agenda, particularly in Thailand and Indonesia, two markets whose buyer and seller dynamics closely mirror those in the Philippines. “However, the priority at the moment is to keep improving our product, streamline our operations, and gain awareness within the Philippines before we consider regional expansion,” shares Levy.
In an era where the thrill of collecting rare items meets the challenges of online transactions, Toki has emerged as a frontrunner in the collectibles market. By establishing a meticulously curated platform focused on transparency and trust, Toki has addressed critical pain points for collectors and tapped into a burgeoning industry. “Our goal is to set a new standard for authenticity and reliability in the global collectibles market,” concludes Levy.
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