The funding is expected to help Paidy in strengthening its balance sheet, which would result in accelerating the firm’s business growth
Image: Paidy secured investment through Series C extension and debt financing. Photo: Courtesy of Adam Radosavljevic from Pixabay.
Japan-based fintech start-up Paidy has secured additional $143m in Series C extension and debt financing funding.
The payment services provider said that the extension of Series C financing was provided by new and existing investors, while the debt financing was provided by four financial institutions, including a warehouse facility.
Paidy founder Russell Cummer said: “As the Paidy network continues to grow, we are very pleased to continue innovating and to offer best-in-market solutions to merchants and new frictionless payment experiences to consumers.
“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.”
Paidy secured investment through Series C extension and debt financing
The latest funding is expected to help Paidy in strengthening its balance sheet, which would result in accelerating the firm’s business growth.
As part of the Series C extension, PayPal Ventures, Soros Capital, JS Capital, Tybourne Capital, along with another company, have invested in Paidy. Adding to the existing funding, the latest round increases the total amount of investment received by the company to $83m.
In October 2019, Paidy opened a $52m warehouse facility with Goldman Sachs Japan and has established a credit facility worth $8m with Mizuho Bank, Sumitomo Mitsui Banking and Sumitomo Mitsui Trust Bank. The firm has received a total of $60m debt financing.
Paidy is a Japanese fintech company that offers instant, monthly-consolidated credit to consumers. It has started the first instant post-pay credit service for e-commerce consumers in Japan.
The company claims that it helps merchants to increase revenue by lowering the frequency of incomplete transactions, increasing conversion rates, average order values, and enabling repeat purchases from consumers.
Furthermore, the company makes use of unique models and machine learning to underwrite transactions in seconds and guarantee payments to merchants.