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Jack Dorsey's Block backs Japanese challenger bank Kyash

Updated: Jul 25, 2024
Published: Mar 17, 2022
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Jack Dorsey's payments company Block (formerly Square) has participated in Tokyo-based challenger bank Kyash's $41.2 million Series D round.

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Kyash raises $41.2 million in funding round

It is Block's first investment in the Asia-Pacific region. Other investors include Japan Post Investment Corporation, Greyhound Capital, SMBC Nikko Securities, Altos Ventures, Goodwater Capital, StepStone Group, JAFCO Group, Mitsui Sumitomo Insurance Capital, and others.

The Japanese startup will use the fresh funding to double its headcount and focus on product growth, such as further collaborations. The Series D brings Kyash's total funding since its inception in 2015 to about $107.7 million.

Kyash is a company that has believed in the grand concept of creating a new financial business. We have been able to welcome new strong investors with our past achievements. JAFCO made its first investment before the service started, and this is the fifth investment in this round. We believe that we will be a company that will take a leap forward and lead the next generation of finance - said Atsushi Fujii, JAFCO Group Partner

What is Kyash?

Through the Kyash app, customers receive a card linked to their bank account. They can then make payments online and in stores, which are categorized. The app also provides tools for money transfers and budgeting. Kyash is currently focused on the Japanese retail market, which is the third-largest economy in the world and has seen significant growth over the past two years due to the shift to digital payments.

As social distancing was enforced globally during the COVID pandemic, cashless payments are becoming the norm. Accordingly, the pandemic has impacted the growth rates of global challenger banks. Based on a Fincog report, Kyash grew 22% from January to May 2020, as did other competitors, Robinhood and Starling Bank.

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