Japan’s instant credit start-up Paidy raises $143m
Japanese instant mobile credit start-up Paidy has raised $143 million in new financing, which includes $83 million in a Series C extension led by PayPal Ventures and $60 million in debt financing.
The financing will help the fintech sign larger merchants, offer new products and grow its user base to 11 million accounts by the end of 2020, the firms says in a statement.
The fintech intends to use the capital to sign larger merchants
As well as PayPal Ventures, other investors included private American investment firms Soros Capital Management and JS Capital Management, and Hong Kong-based hedge fund Tybourne Capital Management.
Paidy received backing from Goldman Sachs Japan, the integrated retail and corporate banking unit of Japan’s Mizuho Financial Group Mizuho Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank for the $60 million in debt financing.
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This is the biggest investment ever in the Japanese fintech industry according to Paidy, which has been delivering cardless payments to Japanese consumers since 2014.
Despite a high usage of cards in Japan there is still a large proportion of consumers who prefer to pay cash on delivery or at an alternative pickup location. While this does mean merchants have to cover the cost of a product until it is delivered, it also means consumers can buy things without creating accounts or entering card details.
“We are pleased that our vision of an instant buy-now-pay-later consumer experience has been validated by millions of consumers and by global leaders like PayPal and Goldman Sachs,” says Paidy founder, Russell Cummer.
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