Japan’s retail solution startup Hey secures $66M from Bain Capital, acquires Coubic


See the original story in Japanese.

Tokyo-based Hey, the Japanese tech firm behind payments startup and e-shop builder, announced today that it has secured series E round funding.

Participating investors in this round are Bain Capital, Hong Kong-based Anatole, Goldman Saches, PayPal, YJ Capital (investment arm of Yahoo Japan) as well as World Innovation Lab (WiL). Hey has not disclosed the size of the entire round but their statement reveals Bain Capital alone will invest 7 billion yen (about $66 million) in this deal.

Hey will use the funds to double its team from 200 to 400 staffers.

Along with the funds, the company will acquire a full stake in Coubic, a Japanese startup behind scheduling and appointment booking solution under the same name. Coubic has recently integrated with “Reserve with Google”, which now allows consumers to make bookings or purchase tickets through Google Search and Maps from the local businesses using Coubic.

Coubic has also recently integrated with Zoom in aim to help retailers offer online counseling or other learning services under the COVID-19 pandemic.

Founded in October 2013 by ex-Googler Hiroshi Kuraoka, Coubic has now 2.5 million monthly active users and is serving more than 80,000 companies and individuals across over 180 business categories.

Here’s what Hey CEO Yusuke Sato says in an official statement:

I’ll never forget the words of a customer I got the other day. That’s from President Suzuki of Hamanoyu, who use our Stores platform to sell his traditional inn’s flagship menu of red bream fish boiled with soy sauce.

He said in his letter to us:

“The kitchen, which had been bereft of guests, has been revitalized by orders online from from all over the country. Our staffs were encouraged by the fact that there were customers who wanted to stay with us, and we felt anew that we had to take a stand for the customers who wanted to come back someday.”

We were reminded that what we can do is small in the face of a major disaster, but nevertheless, we could be a source of hope and vitality for those who are in such a difficult situation.

Through this funding and the acquisition (of Coubic), we will further accelerate the rollout of features for individuals and small and medium-sized businesses in response to the new normal, such as early withdrawal of sales proceeds, support for opening an online store, and simplified online lesson booking through integration with the Zoom video conferencing service, which we have released to address the challenges associated with the pandemic and business restraint measures.

Together with Hey team and our new colleagues from Coubic, we will contribute to creating a society supported by an economy driven by persistence, passion and fun, rather than just pursuing profit and scale.

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