Japan’s instant credit provider Paidy raises $143m from PayPal Ventures, others

Photo: Reuters

Japan-based instant credit provider Paidy has secured $143 million in additional funding in its series C round, the company said in a statement.

Those who participated in the funding round include PayPal Ventures, Soros Capital Management LLC (a Robert Soros Enterprise), JS Capital Management LLC (the family office of Jonathan Soros), and Tybourne Capital Management Ltd, besides one undisclosed company.

The round comprises both equity in ‘Series C extension’ and debt financing. While $83 million has been raised as part of ‘Series C Extension’, the remaining $60 million has flown into the company as part of debt financing.

Paidy offers instant, monthly-consolidated credit to consumers throughout Japan. The startup began its first instant post-pay credit service for e-commerce consumers in October 2014.

It claims to use proprietary models and machine learning to underwrite transactions in seconds.

“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,” said Paidy founder Russell Cummer said in a statement.

Paidy is listed as one of the top 20 companies with the largest investment in Japan’s fintech industry.

Earlier this month, Paidy established a warehouse facility worth $52 million with Goldman Sachs Japan. By the end of October, the startup also established a credit facility worth $8 million with Mizuho Bank, Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Trust Bank.

The funding will strengthen Paidy’s balance sheet, which in turn will help spruce up the company’s expansion plans. Paidy is set to focus on increasing its customer base to 11 million accounts by the end of 2020 by acquiring large-scale merchants and offering additional financial services.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.