TOKYO, Oct 11 (Askume) – Japanese payments company Infurion plans to hold an initial public offering in Tokyo in 2025 as it hopes to accelerate growth through mergers and acquisitions, executives told Askume.
Last month, Incurion said it had received backing from Sumitomo Mitsui Financial Group (8316.T) . The investment of about 8 billion yen ($53.8 million) valued the company at more than 30 billion yen.
“We plan to launch an IPO next year, and by doing so we will be able to further establish our position, raise capital and execute through M&A,” Kenichi Nogami, head of Incurion Finance, said in an interview.
Founded in 2006, Infcurion provides technology for payment services such as digital wallets and credit cards.
Nogami said the company expects to achieve profitability in the current fiscal year ending March 31, due to the rapid growth in transaction volume of its credit card issuance platform business.
This business enables companies to issue credit cards to their employees or customers, and Infocurion has developed close relationships with local banks.
Global rivals include Oakland, California-based Marqeta (MQ.O) and Irish-American Stripe.
Incurion co-founder and CEO Hiroki Maruyama said the company may use proceeds from the planned listing to acquire other fintech companies to expand its services.
“We no longer need to develop everything in-house, but we can add new products to our platform through acquisitions,” Maruyama said.
Although Japan lags behind in digital payments, the market is changing rapidly and the company said it sees huge growth potential, especially in business-to-business payments, which still largely rely on bank transfers.
Incurion is also considering expansion into Asia, Maruyama said.
Mitsubishi UFJ Financial Group (8306.T) , Japan’s largest telecommunications company Nippon Telegraph & Telephone Co. (9432.T) and railway operator West Japan Railway Co. Ltd. (9021.T) are also its shareholders.
(1 USD = 148.6900 yen)
