Labol Secures Approximately 3.2 Billion Yen in Funding for Future Growth

Labol Secures Major Funding to Transform Freelance Financial Services

Labol, headquartered in Shibuya, Tokyo, has announced the successful completion of a fundraising round totaling approximately 3.2 billion yen. The new funding comprises about 1 billion yen in equity and roughly 2.2 billion yen in debt, reinforcing its pursuit of becoming a leader in providing financial services tailored to freelancers and small businesses.

The lead investor for this funding round was WM Partners Inc., with Mizuho Growth Support Fund No. 5 serving as a co-lead investor. A range of reputable institutions, including XTech No. 3 Investment Limited Partnership and Resona Capital No. 8 Investment Limited Partnership, have also participated in this equity allocation.

The need for this significant funding stems from the increasing role of freelancers in Japan’s evolving labor market, especially in light of recent economic challenges and demographic shifts. In response to these changes, Labol aims to address the financial issues faced by freelancers by establishing a comprehensive suite of services, including AI-powered factoring for invoice purchases and deferred payment solutions through their unique labol card service.

Addressing the Challenges Faced by Freelancers

With the ongoing decline in Japan's population and the anticipated reduction in the labor force, the freelance economy has seen remarkable growth, particularly since the COVID-19 pandemic, which led to layoffs and reduced incomes. According to recent statistics, the number of freelancers has risen sharply, fueled by companies relaxing restrictions on side jobs and the implementation of the Freelance Protection New Law set to take effect in November 2024.

However, while the freelance work style continues to gain traction, many freelancers struggle with cash flow management and access to suitable financial services. Traditional banks prioritize stable employment and consistent income when assessing applicants, often sidelining freelancers who lack conventional financial histories. Labol addresses this gap with cutting-edge AI tools designed to enhance the accuracy and speed of financial assessments, offering freelancers a more realistic path to accessing financial products.

The Vision for a Financially Empowered Freelance Community

Labol's mission is firmly rooted in the vision of granting every individual an equal opportunity to harness the value of money. By expanding its existing online financial services and bolstering its technological capabilities, Labol is carving a niche as a challenger bank specifically for freelancers. The recently procured capital will be allocated towards ambitious M&A efforts, the launch of new projects, and ongoing AI advancements to improve service quality.

Many stakeholders in the funding round expressed their commitment to supporting Labol's future endeavors. WM Partners highlighted the growing trend of diversified work styles in Japan, noting the necessity for innovative financial solutions that adequately cater to freelancers. Similarly, investors from Mizuho Capital and XTech Ventures underscored their confidence in Labol's potential to offer vital funding opportunities to the expanding freelance sector.

Labol’s Innovative Services

Labol features two primary services:

1. Labol AI Factoring: This online service provides freelancers and small businesses with immediate cash by buying their invoices quickly, utilizing a proprietary AI algorithm that assesses the suitability of invoices for purchase in a matter of minutes. Registration and transactions are conducted entirely online, enabling freelancers to receive funds in as little as 30 minutes.

Find out more here: Labol AI Factoring

2. Labol Card Payment: This service enables freelancers to make card payments for their business expenses, even to suppliers who do not typically accept credit cards. After registering, users can apply for the service online at any time, receiving payments to their specified accounts often within 60 minutes, effectively providing them with extended payment terms.

More details can be found here: Labol Card Payment

Join the Growing Team at Labol

Labol seeks to address the economic challenges that hinder diverse workstyles while leveraging technology to innovate traditional frameworks. The company is actively recruiting talent across a broad range of positions, including marketing, engineering, and financial management. Interested candidates are encouraged to explore their career opportunities at Labol via the company’s careers page.