Tokyo-based fintech startup Yoii has announced raising $5.5 million in a Series A funding round anchored by Emellience Partners.
The startup, which provides a revenue-based financing (RBF) platform, said the round was also backed by Itochu Technology Ventures, FFG Venture Business Partners, and five other existing investors.
The latest funding round raises Yoii’s total funding to $9.5 million.
Founded in April 2021 and led by CEO Masaharu Uno, Yoii provides a platform that allows companies to secure growth funds from future revenues, distinct from traditional equity or debt financing methods.
The platform’s features include efficient and speedy assessment, simple procedures requiring minimal financial data, and integration with external services for automatic financial data submission.
The company intends to use the funds to expand operations and its business reach in Japan and across the Asian market.
In the context of the Japanese government’s promotion of “New Capitalism”, nurturing startups that address social issues and contribute to a sustainable economic society is deemed crucial.
However, the growth rate of startups in Japan and the number of unicorn companies are lower compared to the US and Europe. Traditional funding methods, such as equity and debt financing, often pose high barriers for early-stage startups.
Yoii said it focuses on RBF as a flexible funding solution to address these challenges.