Japanese fintech startup Paidy, operating in e-commerce, has announced it raised USD 143 million.

Bloomchain.ru reports that the startup has raised USD 83 million during the recent investment round and received USD 60 million more as loans from banks.

The funding round was led by venture branch of PayPal payment system - PayPal Ventures.

Paidy didn’t limit its efforts by venture investment: the Japanese branch of investment bank Goldman Sachs has lent the startup USD 52 million and three local banks established a credit line of USD 8 million for Paidy.

As of the moment, it is the largest investment in Japanese fintech industry. Founded in 2008, Paidy has raised USD 164.6 million so far.


Although Paidy is registered in Japan, it was founded by Canadian Russell Cummer from Goldman Sachs. Cummer launched the startup because despite the high level of penetration of plastic cards in Japan, they are rarely used for payments, even online.

Paidy enables clients to make purchases online, but they don’t need to create an account or use their credit card data. Instead, the money is transferred from the Paidy account, which the clients pay for in the method of their choice in the end of the month.


Last summer the startup announced it had 1.4 million active accounts and intended to take the number up to 11 million by early 2020. For that purpose Paidy wants to grow the partner points of sale pool and launch new financial products. The raised funds and loans will be allocated to increasing the client base.

Essentially, Paidy offers “buy now, pay later” service. It was the formula for success and fortune for the Swedish startup Klarna, which became Europe’s most expensive fintech startup in August after reaching the value of USD 5.5 billion.

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