Japanese financial technology (fintech) startup Paidy Inc has announced raising $55 million in a Series C funding round backed by Goldman Sachs. The latest round raised the startup’s total capital to $80 million.
In a statement, Paidy said the Series C was led by Japanese firm ITOCHU Corporation. It will use the fresh capital to launch large merchants, expand into the offline market, and offer additional financial services.
The fintech firm expects to grow its customer base to 11,000,000 accounts by 2020.
Paidy started Japan’s first instant post-pay credit service for ecommerce consumers in October 2014. It requires no pre-registration or credit card to use; Paidy consumers purchase products online using only a mobile phone number and email address (verification is established through a four-digit code via SMS or voice pin-code) and settle a single monthly bill for all their purchases, either at a convenience store, by bank transfer or auto debit.
The startup also also supports multi-pay installments and subscriptions. There are currently over 1,400,000 Paidy accounts in use (June 2018).
“We are extremely honored that Paidy’s business concept was highly valued by one of Japan’s most prestigious business conglomerates, ITOCHU. Through this tie-up, we expect to launch new merchants in order to deliver Paidy’s frictionless and intuitive financial solution to a much broader audience,” said Russell Cummer, Founder and Executive Chairman of Paidy.
Cummer added that Paidy now aims to promote its vision of removing barriers and creating unique consumer experiences to as many people as possible.
Paidy has proved a powerful means of persuading first time buyers to transact online. Its proprietary models and machine learning mean that transactions are underwritten in seconds, with guaranteed payment to merchants.
Paidy increases merchant revenues by reducing incomplete transactions, increasing conversion rates, boosting average order values, and facilitating easy repeat buying.