Infcurion, a Japanese payments company, plans to conduct an IPO in Tokyo in 2025 to fuel growth via mergers and acquisitions, backed by recent investments from Sumitomo Mitsui Financial Group, increasing its valuation to over ¥30 billion. The firm, established in 2006, aims to achieve profitability and expand into Asian markets amidst a rapidly evolving digital payments landscape.
Infcurion, a Japanese payments company, has announced plans to conduct an initial public offering (IPO) in Tokyo in 2025 as part of its strategy to accelerate growth through potential mergers and acquisitions. Recently, the company secured approximately ¥8 billion ($53.8 million) in funding from Sumitomo Mitsui Financial Group, which has propelled its valuation to over ¥30 billion. Kenichi Nogami, the Chief Financial Officer of Infcurion, stated in an interview, “We are planning to IPO next year and in doing so hope to firmly establish our presence, supplement our funds and execute including through mergers and acquisitions.” Founded in 2006, Infcurion provides technological solutions for a variety of payment services, including digital wallets and credit card systems. The company is optimistic about achieving profitability by March 31, due in part to the rapid growth of its credit card issuance platform which has seen an influx of transactions, as noted by Mr. Nogami. In addition to issuing credit cards for businesses, Infcurion has fostered strong partnerships with local banks. On a global scale, Infcurion faces competition from firms such as Marqeta, based in Oakland, California, and Stripe, an Irish-American company. Hiroki Maruyama, the co-founder and Chief Executive Officer of Infcurion, indicated that the proceeds from the IPO may be utilized for acquiring other financial technology firms to expand their service offerings: “Instead of developing everything in-house, we’re at a point where we can add offerings to our platform through M&A.” As the Japanese market for digital payments evolves—previously slower to adopt such technologies—Infcurion anticipates significant growth opportunities, particularly in the business-to-business payments sector, which predominantly relies on bank transfers. Mr. Maruyama expressed the company’s interest in potential expansion into Asian markets as well. Prominent shareholders of Infcurion include Mitsubishi UFJ Financial Group, Nippon Telegraph and Telephone, Japan’s largest telecommunications company, and West Japan Railway Company.
The Japanese digital payments landscape has historically lagged behind other regions; however, recent developments indicate a shift towards modernization. Infcurion, aiming to capitalize on this transformation, seeks to establish itself firmly in the market through an anticipated IPO. The infusion of capital from investments aligns with their plans to enhance growth via mergers and acquisitions, thereby expanding their range of services to meet increasing consumer demands.
In summary, Infcurion’s planned IPO in 2025 marks a significant step in its growth strategy within the evolving digital payment sector. With substantial backing from major financial groups and a focus on profitability, the company is poised to enhance its presence in a competitive market. Moreover, Infcurion’s intentions to pursue mergers and acquisitions underline its ambition to broaden its service offerings as they respond to the changing dynamics of business-to-business payments in Japan and beyond.
Original Source: www.japantimes.co.jp
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