Habitto secures US$11.7 million in Series A funding led by QED Investors and DG Daiwa Ventures

Habitto, the Japan-based digital bank looking to end financial anxiety for younger Japanese people, has raised US$11.7 million (JPY1.8 billion) via its Series A financing round.

The digital bank, offering a connected financial experience and free financial advice, via its mobile app, has attracted leading venture firms QED Investors, DG Daiwa Ventures (DGDV) and Scrum Ventures. This marks QED Investors first investment in Japan, following several high-profile investments in similar B2C fintechs, including Nubank in Brazil, Klarna in Sweden and Jupiter in India. Habitto’s Series A round also saw returning investors Anthemis Group and other existing shareholders.

The Series A funding will enable Habitto to accelerate its mission of reducing financial anxiety among Japan’s younger generations, who often face economic uncertainties and lack access to appropriate financial advice. With a rapidly growing user base of over 42,000 installs Habitto’s mobile app offers a comprehensive, free financial planning service supported by digital advisors providing personalised guidance to help users build effective financial strategies.

Key highlights of the funding round include:

• An equity financing round of US$11.7 million (JPY1.8 billion)
• Funds will be used to expand Habitto’s user base under attractive unit economics, enhance its digital banking platform, and develop advanced financial tools and services tailored to the unique needs of young Japanese consumers.

Samantha Ghiotti, Co-founder & CEO, said, “We’re fortunate to have the support of a globally experienced investor like QED, paired with the local expertise of DGDV. It’s certainly a challenging funding environment, but in these two investors, we’ve found partners with deep experience and knowledge in fintech. Habitto saw strong interest in the Japanese market from global investors throughout this round and we’re excited for those making their way into the market for the first time.”

In September 2021, Habitto initially raised a US$3.4 million seed round led by Saison Capital followed by a US$3.9 million pre-A financing round in February 2023, co-led by Saison Capital and Cherubic Ventures. With the recent completion of this US$11.7 million Series A round, Habitto’s total capital raised now stands at US$19 million.

“With this financing and backing of these investors, we will continue to tackle financial anxiety by helping Japan’s younger generation develop money strategies. In just three years since our launch Habitto has been entrusted with more than JPY4.7 billion in deposits from customers looking to build a money strategy and better money habits” said Liam McCance, Co-founder & Chief Creative Officer.

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