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Japan’s Paidy secures $55M series C round to foray beyond cardless online payments

Itochu
Paidy

Masaru Ikeda 2018.07.13

See the original story in Japanese. Tokyo-based cardless payments service provider Paidy announced on Thursday that it raised a total of $55 million dollars in a series C round. This round was led by Itochu Corporation with participating from Pocket Card, Goldman Sachs and one unnamed company. Itochu revealed that it has invested $42 million dollars (about 76%) in the startup at this time. This follows Paidy’s (formerly Exchange Corporation or ExCo) series A round ($3.3 million US raised) conducted in July 2014, the follow-on of the series A round in May 2015 ($5 million dollars raised), the series B round ($15 million dollars raised) conducted in August 2016 and a capital and business alliance with Bank of Tokyo-Mitsubishi UFJ (now Mitsubishi UFJ Bank) in July 2017. The total amount raised so far is $80.83 million dollars. Paidy was founded in 2008 by Russell Cummer, whose previous work experience includes Merrill Lynch and Goldman Sachs. It started with a P2P finance or social lending service called Aqush followed by the launch of Paidy back in 2014. Subsequently the management of Paidy shifted from ExCo to the operating company Paidy. As of the end of June 2018, the number of accounts…

Russell Cummer pitching at RISE 2018 in Hong Kong on July 12
Image credit: Masaru Ikeda

See the original story in Japanese.

Tokyo-based cardless payments service provider Paidy announced on Thursday that it raised a total of $55 million dollars in a series C round. This round was led by Itochu Corporation with participating from Pocket Card, Goldman Sachs and one unnamed company. Itochu revealed that it has invested $42 million dollars (about 76%) in the startup at this time.

This follows Paidy’s (formerly Exchange Corporation or ExCo) series A round ($3.3 million US raised) conducted in July 2014, the follow-on of the series A round in May 2015 ($5 million dollars raised), the series B round ($15 million dollars raised) conducted in August 2016 and a capital and business alliance with Bank of Tokyo-Mitsubishi UFJ (now Mitsubishi UFJ Bank) in July 2017. The total amount raised so far is $80.83 million dollars.

Paidy was founded in 2008 by Russell Cummer, whose previous work experience includes Merrill Lynch and Goldman Sachs. It started with a P2P finance or social lending service called Aqush followed by the launch of Paidy back in 2014. Subsequently the management of Paidy shifted from ExCo to the operating company Paidy. As of the end of June 2018, the number of accounts exceeds 1.4 million.

Even without a credit card, Paidy users can certify their identity using SMS (short message service) or IVR (interactive voice response), and then shop online and pay later at convenience stores or via bank transfers. For online businesses, it is possible to incorporate consumers who do not hold credit cards as customers, and in fact money transfers are confirmed by payment from Paidy at the time the order is made, so no accounts receivable risks arise. For customers, there is a level of comfort with e-commerce in that the payment can be made after the goods arrive.

As a result of this funidng, Paidy will become an equity-method affiliate of Itochu. Itochu has many retail chain businesses, including convenience stores and cafe chains under its umbrella, and it is thought that Paidy will develop systems of credit and face-to-face settlement that do not depend on credit cards at these stores. According to knowledgeable sources, it seems that the company is also looking for partnerships with a tablet-based payments platform for retail stores.

Translated by Amanda Imasaka
Edited by Masaru Ikeda

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Japan’s Liquid secures funding round to advance biometric payment solutions

Masaru Ikeda 2015.12.28

See the original story in Japanese. Tokyo-based Liquid, a Japanese startup developing payment solutions leveraging a unique biometric authentication technology, announced on 25 December that it has fundraised from Itochu (TSE:8001), Information Services International-Dentsu (ISID, TSE: 4812), Credit Saison (TSE:8253), and The University of Tokyo Edge Capital (UTEC). Financial details of the investment have not been disclosed. Prior to the latest funding, Liquid received government grants of about 42 million yen ($350,000) in 2014 and about 50 million yen ($416,000) in 2015 based on the qualification to the I-Challenge innovation initiative program by the Japanese Ministry of Internal Affairs and Communication, followed by receiving an undisclosed sum of investment from UTEC. In addition, the company disclosed that their shareholders include Japan’s major telco conglomerate NTT Group and Internet service giant Digital Garage (TSE:4819) while they have not disclosed when these companies joined as shareholders. Liquid was born out of the third incubation batch by Docomo Ventures. The company has developed a biometric payment system called Liquid Pay, which uses fingerprints to authenticate users. Traditionally, the fingerprint authentication used the 1:1 verification method that took time to identify the input fingerprint from a large number of registered fingerprint patterns. But this…

See the original story in Japanese.

Tokyo-based Liquid, a Japanese startup developing payment solutions leveraging a unique biometric authentication technology, announced on 25 December that it has fundraised from Itochu (TSE:8001), Information Services International-Dentsu (ISID, TSE: 4812), Credit Saison (TSE:8253), and The University of Tokyo Edge Capital (UTEC). Financial details of the investment have not been disclosed.

Prior to the latest funding, Liquid received government grants of about 42 million yen ($350,000) in 2014 and about 50 million yen ($416,000) in 2015 based on the qualification to the I-Challenge innovation initiative program by the Japanese Ministry of Internal Affairs and Communication, followed by receiving an undisclosed sum of investment from UTEC. In addition, the company disclosed that their shareholders include Japan’s major telco conglomerate NTT Group and Internet service giant Digital Garage (TSE:4819) while they have not disclosed when these companies joined as shareholders.

Liquid was born out of the third incubation batch by Docomo Ventures. The company has developed a biometric payment system called Liquid Pay, which uses fingerprints to authenticate users. Traditionally, the fingerprint authentication used the 1:1 verification method that took time to identify the input fingerprint from a large number of registered fingerprint patterns. But this company has employed a 1:N identification method using deep learning algorithms. With this method, it only takes a few seconds to identify the input fingerprint. Once users are enrolled in this system, they can purchase with their fingerprints, allowing them to go out without cash or credit cards. By registering the fingerprints from two fingers, the risk of misidentifying the fingerprint is reduced to 1 in one hundred million.

This system is used at Huis Ten Bosch, a theme park in Nagasaki, Japan, where visitors can pay at restaurants and make purchases at souvenir shops without having to bring their wallet, giving them a sense of freedom. It has also been implemented at a hotel in Sri Lanka where hotel guests enroll their biometric information at check-in. After that, they can then unlock the key and make purchases at partnered stores using just their fingerprints. Based on the Liquid Pay technology, the company rolled out a trial of a community currency system in Hokkaido in association with ISID, aiming to offer foreign visitors a more convenient payment option at travel destinations.

Based on the partnership with new shareholders on this funding, Liquid plans to focus on developing services for an increasing number of inbound visitors to Japan toward the 2020 Tokyo Olympics, expanding to the medical and public sectors, as well as regional service expansion to the Southeast Asian market. Having a dazzling selection of companies with expertise in global expansion, system development, finance, and payments infrastructure as shareholders, the partnership will give a boost to an expanding Liquid Pay and other applications based on the company’s biometric authentication technology.

Liquid won the Sony Select award at Docomo Venture’s 3rd batch Demo Day, followed by winning the Microsoft award at Innovation Weekend Grand Finale 2015 earlier this month.

Edited by Kurt Hanson

tech-in-asia-jakarta-2015-tokyo-chapter-liquid — Liquid delivers a pitch at Tech in Asia Tour 2015: Road to Jakarta at Tokyo.

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Japan’s P2P lending platform Crowdcredit raises $1.7 million from trading giant Itochu

Masaru Ikeda 2015.03.04

See the original story in Japanese. As Nikkei reported last week, Tokyo-based Crowdcredit, a startup behind a peer-to-peer lending platform focused on financing emerging markets under the same name, officially announced on Monday that it has fundraised 200 million yen ($1.7 million) from Japanese trading house Itochu (TSE:8001). According to the Nikkei article, Itochu has taken an 18% stake in the lending company, so the latter’s market cap is valued at over 1 billion yen ($8.4 million). See also: Meet Crowdcredit, Japan’s peer-to-peer lending platform for emerging markets Crowdcredit will use the funds to enhance features on the lending platform, looking to give users currency-hedging options, which will make Japanese users more likely to invest. Having dealt with funding projects for individuals and SMEs in Peru, they will expand the coverage to other countries like Mexico, Italy, Spain, and Finland from April. Crowdcredit fundraised from Femto Startup just after its launch in 2013, and subsequently secured additional funding from Monex Ventures, GCI Capital, and Femto Startup in July. Details of these investments have not been disclosed. With this investment round, Itochu has become the second-largest stockholder for Crowdcredit. Edited by Kurt Hanson

CEO Sugiyama visits Peru to study local market conditions. — Crowdcredit CEO Tomoyuki Sugiyama visits Peru to study local market conditions.
(Photo courtesy of Crowdcredit)

See the original story in Japanese.

As Nikkei reported last week, Tokyo-based Crowdcredit, a startup behind a peer-to-peer lending platform focused on financing emerging markets under the same name, officially announced on Monday that it has fundraised 200 million yen ($1.7 million) from Japanese trading house Itochu (TSE:8001). According to the Nikkei article, Itochu has taken an 18% stake in the lending company, so the latter’s market cap is valued at over 1 billion yen ($8.4 million).

See also:

Meet Crowdcredit, Japan’s peer-to-peer lending platform for emerging markets

Crowdcredit will use the funds to enhance features on the lending platform, looking to give users currency-hedging options, which will make Japanese users more likely to invest. Having dealt with funding projects for individuals and SMEs in Peru, they will expand the coverage to other countries like Mexico, Italy, Spain, and Finland from April.

Crowdcredit fundraised from Femto Startup just after its launch in 2013, and subsequently secured additional funding from Monex Ventures, GCI Capital, and Femto Startup in July. Details of these investments have not been disclosed. With this investment round, Itochu has become the second-largest stockholder for Crowdcredit.

Edited by Kurt Hanson

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Meet 4 of Japan’s hottest online fashion malls

Yukari Mitsuhashi 2013.02.21

According to a recent study, the fashion and interior e-commerce market in Japan was about 636 billion yen (about $6.79 billion) in 2012, a 121.5% increase on last year. Many domestic apparel brands join fashion online malls instead of developing and running e-commerce sites on their own. And as a result we’re seeing lots of buzz around these fashion online malls. While it’s likely that brands will have their own e-commerce presences soon enough, the online fashion malls which are currently so popular also have intriguing plans for the future. Let’s take a closer look at a few of the major online fashion malls in Japan (in no particular order), as well as their upcoming plans. 1. Stylife ¶ Rakuten recently acquired Stylife for 1.1 billion yen (about $11,770,000), becoming the biggest shareholder in the company. This is a smart move by Rakuten as it eager to increase its reach into the fashion space. For a long time, what differentiated Stylife from other online fashion malls was its print catalogue, Look!s, that integrated with the online mall, although the company ceased publication of the print version in March of 2012. It is now available online as a web magazine. 2….

According to a recent study, the fashion and interior e-commerce market in Japan was about 636 billion yen (about $6.79 billion) in 2012, a 121.5% increase on last year. Many domestic apparel brands join fashion online malls instead of developing and running e-commerce sites on their own. And as a result we’re seeing lots of buzz around these fashion online malls. While it’s likely that brands will have their own e-commerce presences soon enough, the online fashion malls which are currently so popular also have intriguing plans for the future.

Let’s take a closer look at a few of the major online fashion malls in Japan (in no particular order), as well as their upcoming plans.

1. Stylife ¶

Rakuten recently acquired Stylife for 1.1 billion yen (about $11,770,000), becoming the biggest shareholder in the company. This is a smart move by Rakuten as it eager to increase its reach into the fashion space.

For a long time, what differentiated Stylife from other online fashion malls was its print catalogue, Look!s, that integrated with the online mall, although the company ceased publication of the print version in March of 2012. It is now available online as a web magazine.

2. Magaseek ¶

Just a month or so ago, mobile carrier NTT Docomo snatched up online fashion mall Magaseek, acquiring more than 41.67% of the company’s stock. Magaseek targets female mobile users in their 20s, and its previous owner was general trading company Itochu which still owns 25% of its shares. Similar to Rakuten, NTT Docomo’s plan is to solidify its competitiveness in fashion commerce by cooperating with Itochu, the largest general trade company in the textiles industry.

3. FashionWalker ¶

FashionWalker is another online mall which has aspirations of expanding its business to the Asian market, most notably to Korea and Taiwan. To that end, back in November of 2012 it launched an fashion e-commerce service for Korea. Its parent company is ‘World’.

FashionWalker is more content-focused compared to other online malls, creating dedicated sections for fashion stylists to introduce their latest look-books, under the category of ‘Shibuya Style Village‘.

4. Zozotown ¶

Another fashion online mall that’s accelerating its business in the Asia region is Zozotown (operated by Start Today) which was founded way back in 2004. In addition to zozotown.jp which serves the Japanese market, the company also runs zozotown.com where items can be delivered to 82 countries. In addition to the global online mall, Zozotown will launch ZozoConnect on Feburary 28 where it will introduce international brands — especially brands from Asia — to the world. At the time of launch, the site will focus on five Korean brands, including Bratson.

This is part of our ‘Japanese internet in-depth’ series (RSS). Stay tuned for more features that aim to explain what makes the internet unique in Japan.

Itochu

Japan’s Paidy secures $55M series C round to foray beyond cardless online payments

Japan’s Liquid secures funding round to advance biometric payment solutions

Japan’s P2P lending platform Crowdcredit raises $1.7 million from trading giant Itochu