Funds Completes Series E Funding Round of 1.8 Billion Yen
Funds has completed a Series E funding round, raising a total of 1.83 billion yen. The round was led by "SMBC-GB Growth No. 1 Investment Limited Partnership," jointly operated by Global Brain Corporation and SMBC Edge Corporation. Other investors include Asset Management One, one of Japan's largest asset management companies; PKSHA Technology, a leading AI development company; ALPHA, an independent emerging VC; and Quester Capital, a boutique investment bank based in Hong Kong, among others. The Series E round has been completed up to the 2nd close, and activities are continuing toward the final close.
Use of Funds and Business Vision
"Connecting dormant Japanese capital to global growth markets, creating cross-border growth capital circulation, and building a world-class growth investment and financing platform"
The funds raised will be allocated to strategic investments to pioneer a new future, particularly strengthening the foundation of a "global growth investment and financing platform" centered on financial operations in Asia, accelerating future growth.
Specifically, the funds will be allocated to:
- The recently announced acquisition of shares in Asia Money Fintech Company (AMFC), a FinTech company engaged in consumer finance in Taiwan
- The joint venture FundsQuester (HK) Holdings Limited, established in Hong Kong
- Business promotion in Asia through FIGC, the Singapore-based headquarters for overseas operations
Additionally, funds will be invested in evolving the Funds platform foundation, including technical investments to make the platform AI-native, and marketing investments to expand the user base.
Funds leverages Japan's massive cash and deposits exceeding 1,000 trillion yen and the low-interest funding environment created by the mature financial ecosystem to provide capital to listed companies, unlisted companies, startups, and individuals both domestically and internationally. Particularly from this fiscal year, Funds is expanding the Funds platform built in Japan to connect with overseas markets facing financial inclusion challenges, primarily in Asia, thereby contributing to local industrial development and economic growth.
"Finance" as a product has fewer entry barriers related to language and regional characteristics compared to consumer goods and services. The amount of capital that can be supplied and its conditions become simple yet powerful competitive advantages. With a unique system that has achieved zero delays in distributions and zero principal losses against cumulative amounts exceeding 100 billion yen, strong fundraising capabilities from investors nationwide, and maximizing the advantages of Japan's low-interest environment, the company has built high competitive advantages even compared to global financial players. Going forward, leveraging these Japan-derived advantages, the company will build relationships with top overseas players, actively promote capital supply to representative companies and countries in Asia, provide investors with diverse and attractive asset management opportunities, and create a grand economic circulation where Japanese capital supports global growth.
Funds Group Track Record
Funds envisions a multi-platform that comprehensively solves financial anxieties based on the direct finance platform "Funds," and has developed multiple businesses and conducted M&As. Each business is growing rapidly, with most already achieving profitability on a standalone basis. As a result, including business companies scheduled for consolidation this fiscal year, the group is at a level of posting continuous consolidated profits. Consolidated profits have increased for six consecutive quarters, and consolidated sales have achieved a CAGR (Compound Annual Growth Rate) of +92% over the past four fiscal periods, essentially doubling each period. The Funds Group currently operates the following four businesses.
Fixed-Return Investment Asset Management Service "Funds"
Funds provides fixed-return asset management services. As a direct finance platform establishing the No.1 position in Japan for usage by listed companies, since service launch in 2019 (approximately 6 years), 114 companies primarily listed companies have used the platform, with cumulative amounts exceeding 100 billion yen. Furthermore, it has a track record of zero delays and zero principal losses (as of end of October 2025). Funds continues to expand sales channels through partnerships with major domestic banks and securities companies.
"Funds Startups" Operating Venture Debt Funds
The Funds Venture Debt Fund, where Funds Startups serves as GP, has been developing an environment since starting operations in March 2024 where financial institutions and mid-to-late stage startups can maximize their use of venture debt. The initial fund welcomed seven major financial institutions nationwide, including Sumitomo Mitsui Trust Bank and Fukuoka Bank as LPs, and currently operates a 3.85 billion yen venture debt fund. Focusing on the deep tech sector, the fund has executed venture debt for promising startups representing Japan in various industries, steadily expanding the portfolio and developing and supplying new risk money.
Going forward, Funds Startups will handle capital supply for unlisted companies while Funds handles capital supply for listed companies, providing crossover funding to growth companies and supporting corporate growth across the entire group.
Real Estate Business "Funds Real Estate" Leveraging the Funds Platform
The SNS-based real estate brokerage business operated by Funds Real Estate has achieved cumulative transaction volume exceeding 21 billion yen in just over two years since founding, with cumulative sales of over 380 properties (both on contract basis, as of end of October 2025). Additionally, approximately half of customers who purchased homes through Funds Real Estate are also registered Funds customers. This embodies the group vision of providing a platform that comprehensively solves money-related anxieties throughout customers' life stages, from financial product management to asset formation through real estate acquisition.
Going forward, Funds will continue to establish its unique "SNS Real Estate®" and solve housing purchase anxieties not only for customers registered on the Funds platform but also for a wider customer base, while leveraging the Funds financial platform to focus on developing various real estate-related investment products.
Promotion of Overseas Business Centered on Asia
In June 2025, "FIGC" was established in Singapore as the headquarters for overseas operations within the Funds Group. Funds aims to achieve revenue expansion and growth circulation through financial inclusion support for emerging markets centered on Southeast Asia, using the fundraising function in the Japanese market as a competitive advantage source, and strengthening asset management business that seamlessly connects diverse overseas assets to Japanese investors.
In Hong Kong, the joint venture subsidiary "FundsQuester (HK) Holdings Limited" was established with Quester Capital, a boutique investment bank active primarily in Hong Kong. Funds is actively structuring professional funds expected to generate relatively high returns for investors meeting certain criteria, and has structured projects for major financial groups within Hong Kong for launch projects.
In Taiwan, Funds made a minority investment in AMFC, which has traditionally engaged in Sales Finance and BNPL business for consumers, and has built a cooperative relationship by supplying over 3 billion yen in funding through the Funds platform to date. As a result, in fiscal 2024 (December 2024 period), sales exceeded 1 billion yen, achieving profitability for four consecutive periods with continued revenue and profit growth. Even stronger revenue and profit growth is expected for fiscal 2025 (December 2025 period). The company plans to realize AMFC's subsidiary status and group integration by the end of March 2026, achieving further growth support and significant expansion of group performance.
Norbert Gehrke
