Paidy Raises US$120 Million in Series D Round

Tokyo: Paidy Inc., Japan’s leading “Buy Now, Pay Later” (BNPL) service provider, is pleased to announce that it completed the Series D round of funding by March 31, 2021, raising a total of US$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 US$585 million (of which, equity is US$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.”