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.

Paidy founder Russell Cummer / Photo credit: Tech in Asia

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.

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.

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.

“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.

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.

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.

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