DST, WiL lead Series C for Japan's Upsider
DST Global and World Innovation Lab (WiL) have led a JPY 15bn (USD 115m) Series C round for Upsider, a Japan-based corporate credit card issuer. It is said to be the first time DST has taken the lead role in a Japan deal.
The round comprises JPY 5.4bn in equity and JPY 10bn in debt. Arena Holdings and Tybourne Capital Management are joining DST and WiL as the main underwriters for the third-party equity allotment. Mitsubishi UFJ Capital, Saison Ventures, a unit of Credit Saison, and Anri also participated.
The loan facility is expected to close at the end of May with commitments from major domestic financial institutions. This will take Upsider’s total equity and debt funding since inception to approximately JPY 20bn.
Global Brain provided Series A funding in March 2021 and then re-upped in a JPY 3.8bn Series A six months later, AVCJ Research’s records show. WiL and Greenoaks Capital also came into that round.
Founded in 2018 by Toru Miyagi, Upsider issues real and virtual credit cards to corporate customers, including start-ups with limited credit history. It claims to offer greater flexibility on usage limits, while speeding up account processing through software-as-a-service (SaaS) functionality. The company claims more than 1,000 customers and a 99% re-up rate.
Revenue growth is up tenfold year-on-year, in part supported by a service introduced in collaboration with Credit Saison that allows all inter-company payments to be made by card. It is possible to extend payment deadlines on outstanding balances with as little as 60 seconds' notice and minimal documentary disclosure.
The new capital will be put towards product diversification efforts, recruitment, and expanding into overseas markets, according to a statement.
“The Japanese corporate card industry is still highly inefficient, and we believe that innovation is a necessary field in the future. Many large private companies overseas have brought greater sophistication through innovation,” said Masayuki Mochida of Tybourne.
“Upsider’s service solves customers' pain points and greatly promotes efficiency in the Japanese corporate card industry.”
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.