Kyash has raised 4.9 billion yen ($41 million) in a Series D funding round, the Japanese digital banking startup announced Thursday (March 17).
This company said in a news release that the round brings its total funding to approximately 12.8 billion yen ($107 million).
“With this financing, we will further expand our organization through the hiring of more personnel, and strive to contribute to the financial success of more people by expanding our business areas, and strengthening our service systems,” Kyash said.
As PYMNTS wrote in 2020 — when Kyash wrapped its $45 million Series C — the company’s payment solution connects to Visa’s platform so it can issue cards while also providing customized business services.
Founded in 2015, Kyash is one of many digital financial institutions — such as challenger banks or neobanks — hoping to attract legacy banking customers with offers such as higher interest rates or lower fees.
Japan has been trying to go cashless since 2019, when the government started partially subsidizing digital payments.
But it hasn’t been a smooth transition. At the start of last year, as many as three-quarters of all consumer transactions in the country were made in cash (compared to 28% in the U.S. and 9% in Sweden). And as many as half the households in Japan are thought to have a cash nest egg.
This latest funding round came about through a third-party allotment of new shares to funds overseen by Japan Post Investment Corporation and Block, Inc.
“It has been said [it is] difficult to create a sustainable business model based solely on payment in this industry, which makes it all the more significant that we have received recognition for establishing the sustainable and scalable business model,” said Shinichi Takatori, Kyash’s president and representative director.
“We will continue to expand our business by creating new alliances and increasing collaborations, and garner further trust from our customers.”