Exchange Corporation, the Japan-based operator of online payment platform Paidy, secured $15m in series B funding on Wednesday from investors including conglomerate Itochu.
Itochu invested together with financial services group Eight Roads, a venture capital branch of financial services group Fidelity, as well as financial services firm SBI Holdings and its SBI Investment subsidiary, Arbor Ventures and SIG Asia, a subsidiary of trading and technology company Susquehanna International Group.
Paidy is a platform that allows users to make online payments using only their mobile number and email address, and does not require them to pre-register with a credit card. They receive a bill each month and can pay it off at convenience stores, bank ATMs or bank transfers.
Co-founder and CEO Russell Cummer told TechCrunch the approach is popular in Japan because it makes the buying process quicker and easier on mobile, while the lack of a credit card condition can also appeal for security reasons.
Itochu’s investment in the round forms part of an ongoing strategy to boost its investments in fintech, and it hopes to reach a total of ¥100bn (almost $1bn) in Paidy-based transactions by 2018 through activities including sales to its group companies.
The funding follows an $8.3m series A round closed in May 2015 and backed by SIG Asia, Arbor Ventures, internet company CyberAgent and human resources firm Recruit, which invested through their CyberAgent Ventures and Recruit Strategic Partners units, 500 Startups, Cherubic Ventures and MS Capital.