Habitto, a digital bank providing a new form of mobile-first financial advice to Japan’s younger generations, has secured US$11.7 million (JPY1.8 billion) in Series A funding.
Set to transform Japan’s traditional, fee-heavy financial landscape, Habitto will provide tailored digital banking solutions and accessible financial guidance. The digital bank’s mobile app also comes at a crucial time, as a record 63.2% in Japan feel financially insecure and have no prospect for economic stability.
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.
The Habitto app offers a combination of financial services including a market-leading yield savings account, debit card, insurance and investment products which are complemented with truly customer-focused advisory service.
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.”
Well-funded
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.
The company was born in Singapore when Italian Samantha Ghiotti and Australian Liam McCance worked together in a Singaporean fintech company. The duo then founded SJ Mobile Labs Pte Ltd in Singapore in 2021 and established SJ Mobile Labs Japan KK (SJML Japan) in November of the same year to conduct business in Japan. The company officially changed its name to Habitto Co., Ltd. in March 2023.
“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.
“We are enthusiastic about partnering with Habitto. Japan’s fintech market is primed for innovation, with recent economic shifts drawing investor attention. Sam and Liam and the experienced team at Habitto have shown early success, securing key partnerships and licenses and are well set to build a compelling proposition for the market. This is our first investment in Japan and we are thrilled to be a part of the community,” commented Sandeep Patil, Partner & Head of Asia at QED Investors.
“We have been partnering with Habitto since 2021 and have been consistently impressed by the remarkable progress and performance under Sam and Liam’s leadership. For this Series A round we are excited to co-lead alongside QED, a globally renowned fintech VC. With the involvement of a globally renowned firm in their Series A round, we not only reaffirm our strong belief in Habitto’s massive potential but also in its ability to create a positive impact on Japan’s fintech ecosystem,” commented Yamato Watanabe, Managing Director at DG Daiwa Ventures, who is co-leading this round.
“We are happy to support Sam, Liam and the whole team at Habitto again,” said Sean Park, co-founder of Anthemis Group, who will be joining the board as an observer as part of the round. “Having been a part of the company’s journey from the very start, we are confident in the team’s ability to execute in this largely untapped market. Anthemis believes authentic collaboration is the key to success in finance, and the product experience Habitto has been able to create is a shining example of that.”
