Japanese Instant Credit Fintech Paidy Receives Investment from PayPal Ventures As Part of $143 Million Funding Round

Japan-based Paidy Inc., a Fintech firm that allows consumers to make online purchases quickly and securely without using a credit card or pre-registration, announced on October 31 that it received $143 million in additional funding.

As noted in a release, Paidy’s funding consisted of a Series C extension and debt financing. The company’s Series C was financed by new and existing investors, meanwhile, its debt financing was led by several other financial institutions including a Warehouse facility.

PayPal Ventures, Soros Capital Management LLC (a Robert Soros Enterprise), JS Capital Management LLC (the family office of Jonathan Soros), Tybourne Capital Management Ltd. and one other firm made investments in Paidy’s Series C extension.

This latest investment is reportedly one of the largest in the Fintech sector, according to a report on the top corporate post-funding valuations found in Japan this year. The additional funding will be used to support Paidy’s business growth.

After this recent funding round, the total funding received by Paidy strands at $83 million, which includes investments from existing investors such as Eight Roads Ventures. Total funding received since the company was established is $163 million.

Last month, Paidy launched a $52 million Warehouse facility with assistance from Goldman Sachs Japan Co., Ltd. According to the release, the company has also established an $8 million Credit facility with Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Trust Bank, Limited. These investments bring the total received by Paidy for debt financing to $60 million.

Paidy is now planning to focus on increasing its client base to 11 million accounts by the end of next year. The company intends to achieve this milestone by acquiring more large-scale merchants and also providing different types of financial services.

Russell Cummer, Paidy’s founder, noted:

“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.”



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