TOKYO & BOSTON, August 4, 2020 – hey, a leading payments and e-commerce platform
in Japan that helps businesses easily create bespoke online stores and process in-store
cashless payments, today announced it secured a Series E investment led by Bain Capital
Tech Opportunities with participation from PayPal Ventures, Goldman Sachs, YJ Capital,
Anatole, and existing investor World Innovation Lab. The funding, along with Bain Capital’s
global expertise with integrated software and payments, will enable hey to accelerate growth
and serve the large and growing number of businesses in Japan who are looking to establish
an online retail presence and accept cashless payments in stores.
In conjunction with the new investment round, hey also announced that it has acquired Coubic,
an emerging consumer-facing reservations platform that will help hey further scale and
diversify into adjacent categories. Financial terms of both private investments were not
disclosed.
Formed in 2018 by the merger of mobile point of sale (mPOS) terminal business Coiney and ecommerce
platform Stores.jp, hey provides end-to-end support for businesses as they create
and maintain personalized virtual storefronts and accept in-person payments. The platform
plays an important role allowing merchants in Japan to engage and transact with current and
prospective consumers at a fraction of the cost of other alternatives in the market.
Japan is the third largest economy in the world with $2.7 trillion in consumer spending, but
cashless payments and e-commerce have historically been underpenetrated compared to
other developed markets. However, interest in both categories is at an inflection point today as
Japan is in the midst of a generational transition to a more modern, digital consumer economy.
Concurrently, COVID-19 has driven an acceleration in consumer and merchant demand for
mobile payment options as a frictionless alternative to cash. Together, these tailwinds have
positioned hey to capture market share through smart investments in product development
and customer service as well as enhancements to its go-to-market, cross-selling, and
acquisition strategies.
“Yusuke and his talented team are at the forefront of developing integrated mPOS and ecommerce
solutions that enable Japanese merchants to engage with and sell to consumers
across the country, even those using legacy payment methods. Their innovative technology
creates a ‘one stop shop’ that drives a more efficient, friendly and cost-effective shopping
experience,” said Darren Abrahamson, Managing Director at Bain Capital Tech Opportunities.
“We are excited to partner with hey to help drive the next phase of growth in existing and
complementary markets, which kicks off with the exciting acquisition of Coubic.”
“hey was formed with a vision to employ our innovative technology platform to foster
connections between Japanese consumers and merchants who have been under-served by ecommerce
solutions in the marketplace. Our 100% growth in gross merchandise value over the
past year and this new partnership with a world class group of investors are key milestones in
realizing that vision,” said Yusuke Sato, President of hey. “Partnering with Bain Capital as well
as PayPal Ventures and leveraging their global platform and deep payments and e-commerce
experience will enable us to meet the growing demand for dynamic, remote shopping
experiences for Japanese consumers.”
Bain Capital has deep global investment experience across the payments and e-commerce
sectors, having invested in and added value to a wide-range of companies at all stages of their
growth cycle including Concardis, Finix, Mirakl, Nets, Nexi and Worldpay (acquired by FIS).
The firm has also become a leading investor in Japan since establishing its Tokyo office in
2006, with a portfolio of preeminent technology companies including EmberPoint, Kioxia,
Macromill and Works Human Intelligence. Concurrent with the new investment, Naofumi Nishi,
a Principal at Bain Capital Private Equity in Japan will join hey’s board of directors.
About Hey
Through the development of the online store establishment service STORES, cashless payment
STORES Terminal, and the development of STORES Digital Store Platform, hey supports the
digitization of business. Founded in 2018 by leaders in Japan’s emerging payments and
ecommerce industries, hey’s easily deployed tools create a frictionless shopping, service and
transacting experience regardless of seller size or industry.
About Bain Capital Tech Opportunities
Bain Capital Tech Opportunities (https://www.baincapitaltechopportunities.com/) aims to help
growing technology companies reach their full potential. We focus on companies in large,
growing end markets with innovative or disruptive technology where we believe we can
support transformational growth. Our dedicated, tenured team has deep experience supporting
growing technology businesses—bringing together differentiated backgrounds in private and
public equity investing as well as technology operating roles. We invest behind fundamental
long-term tailwinds as technology penetrates across industries, creating a large and growing
number of investment opportunities. Bain Capital Tech Opportunities focuses on five priority
sub-verticals: Application Software, Infrastructure & Security, Fintech & Payments,
Healthcare IT and Internet & Digital Media.
