Nudge raises Series A extension from TIS, debt financing from MUFG Bank

Nudge has completed an additional Series A funding round, bringing the total amount raised in the Series A round to over JPY 3bn. This includes new investor TIS, an IT services company that became a strategic OEM partner for Nudge. With this funding, Nudge’s total funds raised since its founding in February 2020, including debt financing, is now approximately JPY 5bn.

The additional Series A funding will allow Nudge to further evolve its next-generation “Nudge” credit card service and strengthen the underlying “Nudge Platform” technology infrastructure. Nudge aims to create open innovation with platform stakeholders beyond just its own customers to generate future financial experiences.

Background and Purpose of Additional Series A Funding

Since launching in September 2021, Nudge has led innovation in the credit card industry by focusing on smartphone-native UX, digital-native user needs, and providing an enjoyable experience beyond just convenience.

Following the first Series A close in June 2022, Nudge conducted additional Series A funding in October 2022 from companies and financial institutions with high synergy potential. With TIS becoming a new shareholder as an OEM standard partner, Nudge can further develop the “Nudge” service and strengthen the “Nudge Platform” technology through joint service development and open innovation with shareholders.

Nudge is also raising operating capital through debt financing from Mitsubishi UFJ Bank to meet demand from increasing users making Nudge their main card. Going forward, Nudge will continue raising necessary funds through both equity and debt to build a financial base befitting a next-generation financial institution.

Strengthening Products and Internal Structure

The funding will be used to strengthen product development and internal structure to achieve Nudge’s mission and drive further growth as a web3-ready financial institution:

1. Strengthening product development: Enhance core card functions, rapidly add new enjoyable features/services, and strengthen product development/service operations.
2. Enhancing club partnerships: Boost marketing support for partner “club owners”, increase fan engagement, enable multi-layer revenue with billing functions, etc.
3. Accelerating open innovation and personnel exchanges: Actively pursue open innovation centered on shareholder companies and strengthen business collaboration between startups.

Nudge is also enhancing hiring of “second founding” members to support this business expansion.

Partner Offerings

The “Nudge” credit card allows users to support their favorite artists, sports teams, etc. through everyday shopping via its “club” partnerships, enabling “fan marketing” through daily consumption and providing new revenue sources. The enhanced marketing support and billing functions will contribute to sophisticated marketing and multi-layer revenue streams for partners.

Enterprises interested in improving fan engagement and creating new revenue streams, such as those in entertainment (idols, artists, characters), sports, municipalities, shops/services, can inquire through Nudge’s service form.

Nudge Credit Card Overview

The smartphone-native “Nudge” credit card is designed for the digital native generation. Key features include:

• Smartphone app handles everything from application (taking only 3 minutes) to real-time usage monitoring for security
• Numberless card available in 20 colors with tap payment; flexible repayment options like bank transfer and ATM in addition to automatic debit
• “Club” function lets users support artists, sports teams, etc. through daily spending for entertainment
• NFT ownership enabled via integrated wallet without cryptocurrency management

Business Alliance: “Lite Credit Card Processing Service”

Nudge and TIS also provide the “Lite Credit Card Processing Service” targeting digital natives. This “lite” service trims functionality to focus on convenience, user experience and streamlines costs/deployment time by:

• Offering a minimum viable model for core card system, operations systems, mobile app, data analytics
• Providing smartphone-first UI/UX from application to usage management
• Tailoring to credit card usage scenarios/needs of digital natives
• Allowing flexible repayment like bank transfer, ATM alongside revolving credit
• Using microservices architecture and public cloud for agile feature expansion

It also enables optional NFT issuance and in-app NFT wallet functions as card usage perks.

Through this alliance, TIS aims to enhance its PAYCIERGE digital payment platform and become the top share provider in the light credit card market. TIS will integrate Nudge’s infrastructure into its PAYCIERGE “Lite Credit Card Processing Service” by adding proprietary functions to provide expanded OEM services to card issuers and prospective companies.

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