Nudge Corporation Successfully Raises Additional 1.48 Billion Yen in Funding Round

Nudge Corporation Secures 1.48 Billion Yen in Latest Financing Round

Nudge Corporation, headquartered in Chiyoda, Tokyo, has announced the successful raising of 1.48 billion yen through a combination of asset financing from Morgan Stanley, venture debts from Resona Bank, and investments from existing and new shareholders. With this funding round, the total funds secured by the company now stand at approximately 6.5 billion yen.

Background and Objectives of the Fundraising

In Japan's startup ecosystem, enhancing capital efficiency while minimizing dilution for existing shareholders has led to the rising importance of debt and asset financing. This is particularly crucial for fintech startups that handle payment infrastructures, as solid and flexible funding solutions are vital for sustaining business growth amid rapidly increasing transaction volumes.

Nudge’s next-generation credit card, aptly named "Nudge," has been gaining significant traction, especially among younger consumers engaged in activities that promote their passions and social contributions. Thanks to its unique model, Nudge has seen a rapid surge in membership and transaction volumes. The recent funding aims to accelerate this growth and lay a solid financial foundation in preparation for larger equity financing in the future.

Distinct Features and Approaches of the Current Funding

Nudge has implemented three innovative strategies in this funding round:

1. Optimizing Capital Efficiency Through Diverse Financing Methods

By securing a variety of funding channels, including asset and debt financing, Nudge enhances its capital efficiency while maintaining a robust and agile operating capital system. This strategy minimizes equity dilution, resulting in a cumulative fundraising amount of approximately 6.5 billion yen.

2. Financial Support from Strong Financial Institutions

The involvement of major players, Morgan Stanley and Resona Bank, underscores the market's confidence in Nudge's credit model and the soundness of its business growth potential.

3. Reinforced Governance through Founder’s Commitment

Takahashi Okita, the founder and CEO, has also made additional equity investments in this round, demonstrating his unwavering confidence in the company’s growth trajectory and a strong commitment to enhancing its long-term value.

Summary of the Fundraising Round

- Amount raised: 1.48 billion yen (including debt and asset financing)
- Total funds raised: Approximately 6.5 billion yen
- Primary use of funds: Operating capital for expanding transaction volumes related to the Nudge credit card and investments in system development and marketing for service enhancement.

Remarks from Key Stakeholders

Daijiro Ohta, Branch Manager at Resona Bank’s Tokyo Central Branch, expressed his enthusiasm about participating in Nudge's funding round. He stated, "We are delighted to support Nudge in creating new financial experiences through their next-generation credit card. Our strategy emphasizes the enhancement of payment services and expanding investment in startups. Supporting this funding round is a significant step in our commitment to providing growth capital while minimizing equity dilution. We are committed to empowering promising startups and fostering collaborative innovations to create a new financial ecosystem."

Takahashi Okita, President of Nudge Corporation, also expressed his gratitude for the support from Morgan Stanley, Resona Bank, and existing and new shareholders in securing 1.48 billion yen. He noted, "Since its inception, Nudge has realized rapid expansion in transaction volumes by creating added value through a flexible system that allows for diverse small-scale issues, integrating personal passion activities and social contributions into financial incentives. This recent fundraising not only fortifies our financial foundation while minimizing equity dilution but also strengthens our commitment to accelerating business growth as we pursue our mission to reshape future financial experiences through individual actions."

About Nudge Corporation

Founded in February 2020, Nudge aims to create future financial experiences through individual actions. With its cloud-native credit card service platform, the "Nudge Platform," Nudge operates Japan’s pioneering next-generation credit card. Since its establishment, the company has fostered a workplace culture that values individual perspectives, while remaining committed to creating innovative financial experiences that meet the demands of a diversified society.

- Founded: February 12, 2020
- CEO: Takahashi Okita
- Location: 4th Floor, Otemachi Building, 1-6-1 Otemachi, Chiyoda, Tokyo
- Capital: Approximately 5 billion yen (including reserve funds)