Japan-based consumer credit provider Paidy raised $143m in debt and equity financing yesterday from investors including PayPal Ventures, digital payment processor PayPal’s strategic investment arm.
PayPal Ventures took part in the $83m series C equity portion of the round together with Soros Capital Management, JS Capital Management and Tybourne Capital Management.
The other $60m consisted of a $52m warehouse facility supplied by Goldman Sachs Japan and an $8m credit facility with Mizuho Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank.
Founded in 2008, Paidy offers a post-pay credit service for online consumers, enabling them to buy products they subsequently pay for through instalments. It intends to widen its range of services as it looks to grow its account base to 11 million by the end of 2020.
Paidy said it has now raised $163m in funding altogether. The $83m is an extension to an ongoing series C round Paidy had been raising.
The round’s $55m first tranche was led by trading firm Itochu and backed by investment bank Goldman Sachs in July 2018, and payment services firm Visa was revealed as a participant the following month.
Itochu had joined SIG Asia and Eight Roads Ventures, respective subsidiaries of quantitative trading firm Susquehanna International Group and Fidelity, as well as Arbor Ventures, financial services firm SBI and its SBI Investment unit, in Paidy’s $15m series B round in 2016.
SIG Asia and Arbor Ventures had already backed the company’s series A round, which closed at $8.3m the year before. It included CyberAgent Ventures and Recruit Strategic Partners, on behalf of internet company CyberAgent and human resources firm Recruit, in addition to MS Capital.
