Japan payments company Infcurion says planning IPO in 2025

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11/10/2024 02:00

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      Expects to be profitable FY2024/2025
    

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      Global competitors include Marqeta, Stripe
    

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      Eyeing M&A to expand range of services
    

  
    By Makiko Yamazaki and Sam Nussey
       TOKYO, Oct 11 (Reuters) - Japanese payments company
Infcurion is planning an initial public offering in Tokyo in
2025 as the company looks to accelerate its growth including
through mergers and acquisitions, its executives told Reuters.
    Last month Infcurion said it secured backing from Sumitomo
Mitsui Financial Group  8316.T . The roughly 8 billion yen
($53.8 million) investment gives the company a valuation of more
than 30 billion yen.
    "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," Kenichi Nogami,
Infcurion's chief financial officer, said in an interview.
    Infcurion, which was founded in 2006, offers technology
powering a range of payments services such as digital wallets
and credit cards.
    The company expects to be profitable in the current
financial year ending March 31, as its credit card-issuing
platform business has seen rapid growth in transactions, Nogami
said.
    The business enables companies to issue credit cards to
their staff or clients and Infcurion has built close
relationships with local banks. 
    Global competitors include Oakland, California-based Marqeta
 MQ.O  and Irish-American Stripe. 
    Hiroki Maruyama, Infcurion's co-founder and CEO, said the
company could potentially use proceeds from the planned listing
to buy other financial technology firms to broaden the range of
services.
    "Instead of developing everything in-house, we're at a point
where we can add offerings to our platform through M&A,"
Maruyama said. 
    While Japan has been a laggard in digital payments, the
market is changing quickly and the company says it sees large
room for growth, particularly in business-to-business payments,
which still mostly rely on bank transfers.
    Infcurion is also considering expansion in Asia, Maruyama
said. 
    Mitsubishi UFJ Financial Group  8306.T , Japan's largest
telecoms company Nippon Telegraph and Telephone Corp  9432.T 
and railway operator West Japan Railway Co  9021.T  are also
among its shareholders. 
($1 = 148.6900 yen)

 (Reporting by Makiko Yamazaki and Sam Nussey; Editing by
Lincoln Feast.)
 ((sam.nussey@tr.com;))