Japan’s Finance Startup Yoii raises $5.5m funding in Series A Round

By Gloria Mathias

Yoii Inc., which provides the revenue-based financing (RBF) platform “Yoii Fuel” in Japan, has announced the completion of a Series A round for approximately $5.5 million.

This funding round was led by Emellience Partners, with participation from Itochu Technology Ventures, FFG Venture Business Partners, and five other existing investors. This raises Yoii’s total funding to $9.5 million. By introducing new fundraising methods in Japan, that are neither debt nor equity, Yoii aims to support the growth of startups.

In the context of the Japanese government’s promotion of “New Capitalism,” nurturing startups that address social issues and contribute to a sustainable economic society is deemed crucial. However, the growth rate of startups in Japan and the number of unicorn companies are lower compared to the US and Europe.

Traditional funding methods, such as equity and debt financing, often pose high barriers for early-stage startups. Yoii focuses on RBF as a flexible funding solution to address these challenges.

Yoii Fuel is a platform that allows companies to secure necessary growth funds from future revenues. The entire application process can be completed online, enabling users to avoid share dilution and the need for personal guarantees or collateral. Features include efficient and speedy assessment, simple procedures requiring minimal financial data, and integration with external services for automatic financial data submission.

Moving forward, Yoii will strengthen its product promotion in Japan but also aim to expand into the Asian market. This will involve conducting international research, developing its risk models, and advancing its recruitment efforts.

Founded in April 2021, Yoii is a FinTech company providing a new option for fundraising through RBF, distinct from traditional equity or debt financing methods. The company aims to support the growth of entrepreneurial ventures and enhance asset liquidity.