Japanese fintech startup Paidy raises $143m from PayPal, others

Japanese fintech firm Paidy has raised a total of US$143 million in series C funding and debt financing from new and existing investors.

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Paidy founder Russell Cummer / Photo credit: Tech in Asia

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PayPal Ventures, Soros Capital Management, JS Capital Management, Tybourne Capital Management, and an undisclosed company invested in Paidy as part of the firm’s US$83 million series C round, according to the statement.

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The debt financing, on the other hand, included US$52 million from Goldman Sachs Japan and US$8 million from Mizuho Bank, Sumitomo Mitsui Banking Corp., and Sumitomo Mitsui Trust Bank.

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Paidy plans to increase its customer base to reach 11 million accounts by the end of 2020 by acquiring large-scale merchants and offering additional financial services.

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“As the Paidy network continues to grow, we are very pleased to continue innovating and to offer best-in-market solutions to merchants and new frictionless payment experiences to consumers,” said Paidy founder Russell Cummer.

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Founded in 2014, Paidy claims to have started Japan’s first instant post-pay credit service for ecommerce consumers. The mobile- and instant checkout-focused company enables consumers to buy online without a credit card or pre-registration using proprietary models and machine learning to underwrite transactions.

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Prior to the extended series C round, the company raised US$15 million in July 2016 in a series B round led by Eight Roads Ventures Japan and Softbank spin-offs SBI Holdings and SBI Investment’s fintech fund.

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In July 2014, the company raised US$3.3 million from Arbor Ventures, CyberAgent Ventures, and Recruit Strategic Partners.