A Tokyo-based mobile financial app has raised $41.2 million in Series D funding.
Japan Post Investment Corporation, Block, Greyhound Capital, SMBC Nikko Securities, Altos Venture, Goodwater Capital, StepStone Group, JAFCO Group, and others are some of the investors in the round.
This is Block's first investment in an Asia-based company. The Series D brings the total funding to over $107 million.
Kyash, a would-be challenger bank in Japan, raises $14M
Shinichi Takatori, chief executive officer of Kyash, said that the startup will use the proceeds to double its headcount and bolster product growth.
Kyash is a mobile banking app that allows consumers to make online and offline payments, as well as withdraw money from ATMs. Kaysh, the issuer of Visa Card, gives flexibility by issuing virtual and physical pre-paid debit cards. Takatori said in an interview that Kyash is focused on direct channel business and has a white-labeled card issuing platform.
According to Takatori, Kyash is currently focused on the Japanese retail market, which is the third largest economy in the world. The company obtained two licenses from the government to operate its financial services in Japan.
Takatori did not provide the number of users or total addressable market, but he did say that the unit economics were positive.
Cashless payments are becoming the norm with social distancing being enforced around the world. The growth rates of global challenger banks have been impacted by the Pandemic. Kyash grew 22% from January to May 2020 like other competitors, according to a report. In March 2020, Kyash raised $45 million in Series C.
Takuma Baba, managing director of Japan Post Investment Corporation, said that unbundling of traditional banking has become an irreversible trend around the world.
The first investment in Kyash was made by JAFCO, and this round marks its fifth investment.
Takatori said that they will continue to expand their business by creating new alliances and increasing collaborations.
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