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Habitto, a digital bank from Japan, has secured $11.7 million (JPY 1.8 billion) in its Series A funding round as it moves to reduce financial anxiety among Japan’s youth. The digital bank that aims to make accessible financial advice and connected banking experience through its mobile application attracted notable venture firms like QED Investors, DG Daiwa Ventures (DGDV), and Scrum Ventures.
This funding round represents a big milestone for Habitto, as QED Investors makes its first investment in Japan. QED Investors has become synonymous with its high-profile investments in consumer fintechs across the world, such as Nubank in Brazil, Klarna in Sweden, and Jupiter in India. Returning investors, Anthemis Group, also participated in this round, which reiterates the confidence in the vision of the company.
The funds raised will support the expansion efforts of Habitto and scale its user base and its digital platform. The service provides free financial planning to its users, supported by digital advisors who give them guidance. This is aimed at making the young Japanese consumers manage their money efficiently and build sustainable money strategies in a society where uncertainty of the economy and no easy access to financial advice have been common issues.
With over 42,000 app downloads to date, Habitto witnessed a strong demand for its offerings among Japan’s younger demography. The company provides an app that integrates several types of financial tools and features, allowing users to manage finances easily while providing them with useful insights on budgeting, savings, and investments. It focuses on helping young consumers alleviate anxiety and improve their financial state by equipping them with the knowledge and tools for doing so.
This series A round further adds to Habitto’s capital raised so far. That included a seed round raised back in September 2021 for $3.4 million and a pre-A round earlier this year worth $3.9 million. It puts the total funds raised by the company at $19 million. The funds are aimed at expanding the offerings of the bank, developing more sophisticated financial tools, and enhancing the user experience of the platform all while focusing on young Japanese consumers’ unique needs.
Samantha Ghiotti, Co-founder and CEO of Habitto, expressed gratitude for the support of QED Investors, noting the importance of having a globally experienced partner combined with the local expertise of DGDV. “In what is a challenging funding environment, we’re fortunate to have these two investors, who bring deep experience and a strong understanding of the fintech space,” Ghiotti said. She also added that the keen interest shown by global investors in this round of funding reflects the growing attention Japan’s fintech market is attracting, especially in the wake of the country’s digital transformation.
Liam McCance, Co-founder and Chief Creative Officer of Habitto, highlighted the company’s impressive growth, with more than JPY 4.7 billion in deposits from users who trust Habitto to help them develop smarter money habits. “In just three years since our launch, we’ve built a platform that empowers young people to take control of their finances and reduce financial anxiety,” McCance said.
Additional funding will help Habitto boost its user base growth by creating attractive unit economics for further development of its digital banking services and introducing new features that meet the needs of its target audience. With QED Investors, DGDV, and Scrum Ventures backing Habitto, the company is going to make great strides in providing financial tools and education to Japan’s younger generations, helping them overcome financial stress and build long-term financial security.
By cutting down on financial anxiety and improving money management skills, Habitto is expected to have a lasting impact on how younger generations in Japan approach their finances, thus making the company a major player in the fintech landscape of Japan.
