Japan-based e-commerce technology producer Hey raised at least ¥7bn ($66m) in series E funding yesterday from investors including internet company Yahoo Japan and digital payment technology provider PayPal.
Private equity firm Bain Capital invested ¥7bn through its Bain Capital Tech Opportunities fund to lead the round, which included investment bank Goldman Sachs, Anatole and World Innovation Lab. The corporates took part through PayPal Ventures and YJ Capital respectively.
Hey provides software that helps businesses create online storefronts and accept and process cashless payments. It was formed through the early 2018 merger of payment processor Coiney and Stores.jp, an e-commerce subsidiary of online services provider Bracket.
The series E proceeds will support the company’s acquisition of Coubic, the Japan-based creator of an event booking management system, for an undisclosed amount.
Coubic had received a total of $3.1m in funding from digital media company Gree’s corporate venturing unit, Gree Ventures, and venture capital firm DCM as of 2015, before adding $2.7m from DCM and Globis Capital Partners, a subsidiary of education provider Globis, in 2017.
Coiney had raised $21m in debt and equity financing pre-merger from investors including payment services firm Credit Saison, CyberAgent Ventures, Dentsu Digital Holdings and SBI – on behalf of internet company CyberAgent, marketing agency Dentsu and financial services firm SBI respectively.
Other investors in Coiney included private-public partnership Innovation Network Corporation of Japan, East Ventures and Anri.
Yusuke Sato, Hey’s president, said: “Hey was formed with a vision to employ our innovative technology platform to foster connections between Japanese consumers and merchants who have been under-served by e-commerce solutions in the marketplace.
“Our 100% growth in gross merchandise value over the past year and this new partnership with a world class group of investors are key milestones in realising that vision.”
