Japan's Sumitomo Mitsui backs GMO Payment
Japan's GMO Internet - which runs its own early-stage investment unit, GMO Venture Partners - has raised JPY8 billion ($65 million) from Sumitomo Mitsui to develop e-commerce payment solution GMO Payment Gateway (GPG).
GPG operates online credit card payment and other internet payment services, connecting e-commerce businesses and credit companies to merchants. According to a release, GPG and Sumitomo Mitsui Banking Corporation will also establish a joint venture.
The JV will see GPG provide payment processing services to Sumitomo Mitsui customers, significatnly boosting its customer base. Sumitomo Mitsui is one of the largest banks in Japan, with around 27 million retail accounts in a country with population of around 127 million.
"It is important to diversify payment business opportunities by bringing together finance technology and Internet technology, and to broaden relationships with large-scale businesses in order to drive ecommerce penetration in Japan, a rate that is expected to reach 10% in the not-too-distant future," said the company in a statement.
GPG was set up in 1995. In 2014, the unit reported net sales of JPY7.2 billion, and net profit of JPY 1.5 billion, versus JPY5.7 billion and JPY1.2 billion, respectively, for the previous year.
Aside from having its own payments service in Japan, GMO has invested in a number of e-commerce and payments-related start-ups elsewhere in Asia. Recent investments include Southeast Asian payment services provider 2C2P which raised $7 million in Series C round that included GMO and Amun Capital.
GMO's venture unit also backed Indonesia's Coda Payments in a $2.3 million Series A round in 2013 that also included Rakuten Ventures, CyberAgent Ventures, and return backers Golden Gate Ventures.
The payments space is becoming crowded in Japan. Numerous technology companies are looking to build market share, including e-commerce giant Rakuten's Smartpay, web analytics firm Metaps' Spike, and messaging service Line's Line Pay.
More on Financials
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.