Funds Completes Final Close of Series E Round
Funds Inc., a company based in Shibuya, Tokyo, and known for its direct financing platform, has announced the successful completion of the final close of its Series E funding round, raising approximately 4.8 billion yen. This latest round brings the total funds raised since its inception to around 8.8 billion yen in equity, exceeding 10 billion yen when debt financing is included.
Following the first close of the Series E round announced in November 2025, this funding round has attracted significant investments from notable firms, including Sony Financial Ventures, Global Brain Frontier, and Japan Airlines, as well as debt financing from major banks such as Mizuho Bank, Sumitomo Mitsui Banking Corporation, Hokuhoku Financial Group, and Shoko Chukin Bank.
Additionally, part of this round involved a secondary offering aimed at optimizing the shareholder structure in anticipation of an IPO. Funds' group sales have doubled year-on-year for three consecutive years, with expectations of surpassing 10 billion yen in sales next fiscal year.
Strategic Recruitment and Technological Advancements
Moving forward, Funds aims to bolster its hiring of financial professionals while enhancing credit assessments through AI utilization. The company also plans to expand its business foundation through mergers and acquisitions (M&A) and global expansion, solidifying its status as a market leader in the next generation of direct finance. These initiatives will further streamline its management system.
Background and Objectives: Evolving into an Essential Financial Infrastructure
As a pioneer in direct financing platforms, Funds has achieved a remarkable track record of zero delays or principal losses against over 110 billion yen raised since its service launch (as of May 20, 2026). With the arrival of an environment focused on interest rates, individual investors are increasingly interested in asset management, while diverse funding needs for companies are becoming apparent. This reflects a significant shift towards "third-party funding methods" that are neither bank loans nor equity funding.
This latest financial round is not merely about securing growth capital but signifies a strong foundational step for Funds, as it has welcomed partnerships with major financial institutions and leading Japanese corporations, as well as overseas investors. This evolution places the company on a trajectory to become an integral part of the financial infrastructure essential for society. We aim to transcend the startup realm by establishing ourselves as a reliable, public-level player in the new landscape of direct finance.
With the ongoing trend from savings to investment accelerating, Funds is equipped with a robust financial foundation to provide attractive yields to individual investors and responsive funding to enterprises, positioning itself to lead the new capital flows in Japan.
Annual Transaction Volume and Global Expansion
Funds’ group has broadened its business scope as a direct financing platform, incorporating real estate-related ventures through Funds Real Estate, venture debt via Funds Startups, and the successful integration of Taiwan's Fintech company, AMFC (Asia Money Fintech Company). As a result of this diversification and synergy creation, the group's annual transaction volume has already reached approximately 60 billion yen for this fiscal year. Plans are in place to further optimize the global flow of funds as a "global financial platform originating from Japan."
Sustained Growth and Future Prospects
In terms of financial performance, the group's consolidated sales have exceeded double compared to the previous year for three consecutive years. Additionally, we are steadily advancing in our global ventures, with an overseas revenue ratio of about 30%. We will continue to provide new value that contributes to growth in both Japan and Asia through steady progress.
Remarks from CEO Yuichiro Fujita
We are currently at a significant turning point in what can be termed our second founding phase. This recent fundraising marks a pivotal step toward achieving the "new flow of capital" we aspire to create. By blending financial professionalism with technology, we aim to enhance the wealth of investors, participating companies, and society as a whole, and we are committed to our path towards becoming a public company. We genuinely welcome aspiring partners to join us in this exciting endeavor.
Company Profile
Founded in November 2016, Funds Inc., headquartered at Fujihara Building, 5th Floor, 1-10-11 Ebisu Nishi, Shibuya, Tokyo, is led by CEO Yuichiro Fujita. A graduate of Waseda University’s School of Commerce, Fujita previously worked at CyberAgent, founded a web marketing support firm in 2007, which was sold to a public company in 2012, and established a major lending-based crowdfunding service in 2013 before founding Funds in 2016.
Important Notice Regarding Fees and Risks - Funds does not charge fees for account opening, management, or investments. However, customers will be responsible for any transfer fees charged by their financial institution when sending funds to the deposit account. Please check with your respective financial institution for these fees. Funds does not guarantee the principal for the funds we manage, and the possibility of impairment exists. Detailed conditions and risk information related to each fund should be read carefully in the important explanatory documents.