Japanese startup Paidy raises $120m in Series D round
Paidy, Japan's "Buy Now, Pay Later" (BNPL) service provider, announced it completed the Series D round of funding, raising a total of $120 million from JS Capital Management LLC, Soros Capital Management LLC, Tybourne Capital Management Ltd., and Wellington Management.
Since late 2020, Paidy has additionally completed the loan facilities set up by upsizing the warehouse facility with Goldman Sachs, newly establishing the secured loan facility with Sumitomo Mitsui Banking Corporation and the other warehouse facility through the syndication led by Mizuho Bank, Ltd. This capital increase and additional debt financing from the financial institutions bring total capital raising since the company's founding to $585 million (of which, equity is $337 million, one of the largest amounts of funding ever raised by a startup in Japan).
With the corporate mission to "Take the hassle out of your payment and purchase experiences," Paidy aims to create an environment where everyone can shop wisely and joyfully. With Paidy, customers can settle easily with just their mobile phone number and email address, and then pay the accumulated charges the following month. Paidy has been used by a large number of customers since the launch of the service at the end of October 2014.
As of March 2021, the number of websites accepting Paidy exceeds 700,000 in Japan and the number of consumer accounts exceeds 5 million (*1). Aiming to make the service more convenient, Paidy also recently began offering "3-Pay," a service that allows customers to split charges into three equal, interest-free, monthly installments, (*2) which has been very well received.
The funds raised in the latest round will be used to expand transactions with large merchants, develop new services, and strengthen its balance sheet in response to the rapid expansion of "3-Pay."
Russell Cummer, Founder and Executive Chairman, Paidy: "Having the support of a powerful lineup including our existing shareholder JS Capital and Soros Capital of the United States and Tybourne of Hong Kong, and Wellington Management, makes me feel very encouraged about the future growth potential of a born-in-Japan startup that offers new values to the world. We intend to continue expanding our horizons and raising our sights. As our payment volume increases and '3-Pay' is used by more and more customers, we are strengthening our financial base to secure our growth trajectory as a trusted brand and reliable business partner for our merchants."
James Chang, Investment Partner, JS Capital and Soros Capital (the family offices of Jonathan Soros and Robert Soros, respectively): "As existing investors, we are pleased to support Russell, Riku Sugie and the entire Paidy management team with financial and strategic support by co-leading this financing round. Paidy's team, brand, technology and network have grown tremendously since our initial investment, and we are excited about their prospects as a leader in BNPL services for both customers and merchants in Japan."
Eashwar Krishnan, Managing Partner, Tybourne Capital Management: "We are pleased to be investing in Paidy's latest round, following our series C investment in the company in Japan. Paidy is building a world-class organization in the BNPL space in Japan and we have been very impressed with what the company has accomplished even before the recent round of investment and are excited about its future. As an investment firm, we are very focused on supporting Japanese startups as we believe that these young entrepreneurial companies will lead the pace of innovation in the country. We look forward to working with Paidy management for many years to come to build an enduring company."