Kyash, a Tokyo-based mobile financial app, has raised $41.2 million (4.9 billion JPY) in Series D funding. The startup will use the proceeds to double its headcount and bolster product growth, Shinichi Takatori, chief executive officer of Kyash. Founded by Takatori, who previously worked in the banking and consulting industry, Kyash offers a mobile banking app that enables consumers to make online and offline payments, remittances, and ATM withdrawal services. In addition, Kyash, the issuer of Visa cards, provides flexibility by issuing virtual and physical pre-paid debit cards. When asked about its B2B business, Kyash carved out its white-labeled card issuing platform to incursion last year and is focused purely on direct channel business. With social distancing being enforced globally during the COVID pandemic, cashless payments are becoming the norm. Accordingly, the pandemic has impacted global challenger banks’ growth rates. Kyash grew about 22% from January to May 2020 like other competitors, including Robinhood and Starling Bank.
Challenger Bank is a core theme in fintech, and unbundling of traditional banking has become an irreversible trend globally. AFCO made the first investment in Kyash before the service was launched, and this round marks its fifth investment. Kyash will continue to expand our business by creating new alliances and increasing collaborations and garner further trust from our customers.