Kyash, a Tokyo-based digital wallet, announced that it has raised $ 41.2 million, or 4.9 billion yen, in a Series D round. Since its launch in 2015, the cashless mobile app and matching credit card have increased total funding to nearly $ 108 million, or $ 12.8 billion.
Global investors and Japanese banks joined the round, including Japan Post Investment Corporation, Jack Dorsey’s Block, formerly known as Square, Altos Ventures Goodwater Capital and StepStone Group in the United States. Additional investments came from Greyhound Capital UK, SMBC Nikko Securities, JAFCO Group, Mitsui Sumitomo Insurance Capital and others. According to a Nikkei report, Kyash is the first Asian company to invest in Block.
The company said that the start-up will use the income to hire more employees, expand the product range and improve the service business. Shinichi Takatori, Kiash’s president and CEO, said it was “difficult to create a sustainable business model based solely on trade payments and settlements”, and that he hoped the funds would help the company achieve “high capital efficiency”. He also expressed gratitude for the new investment from Block, which he described as a “pioneer in financial innovation in the United States and other countries.”
Taikuma Papa, CEO of Japan Post Investment Corporation, also commented on his investment: “Kiach’s mobile-centric philosophy and design is a key component of the irreversible global trend of disconnecting traditional financial institutions and integrating them with technology.”
Kyash can be considered as a new bank or an online bank such as Robinhood, Chime, SoFi and Revolut. His previous Series C round raised $ 45 million in 2020.
Related: The block reported a total profit of 1.18 billion dollars in the fourth quarter, up 47% from the previous year.
Jack Dorsey withdrew from Twitter in November. Shortly afterwards, Square renamed itself Block in December, announcing the inclusion of several Bitcoin (BTC) companies in its portfolio. Block continues to operate Square and CashApp, as well as the music platform Tidal. Since then, Dorsey has primarily focused on scaling up crypto-initiatives in Block.