Japanese AI Unicorn LayerX Completes $100 Million Series B Funding, Becoming TCV's First Investment in Japan

Summary

Japanese AI SaaS startup LayerX announced on September 1st that it has completed a $100 million Series B funding round. The round was led by US-based Technology Cross Ventures (TCV), marking TCV's first investment in a Japanese startup. Following this round, LayerX's total funding raised reached $192.2 million, with a valuation of approximately $500 million, making it one of the largest Series B funding cases in Japan.

Company Background and Business Model

Founded in 2018 by serial entrepreneur Yoshinori Fukushima, LayerX specializes in providing AI-driven back-office automation solutions for businesses. The company's flagship product, the Bakuraku suite, automates corporate spending workflows, including features such as expense management, invoice processing, and corporate credit card operations.

The company primarily offers three core products:

• Bakuraku Platform: Automates back-office processes such as corporate finance, procurement, and human resources.
• Alterna: A retail digital securities investment platform developed in collaboration with Mitsui & Co.
• Ai Workforce: A solution that leverages generative AI to optimize workflows and effectively utilize corporate data.

Market Opportunities and Challenges

Japan is facing multiple pressures, including an aging population, labor shortages, the widespread adoption of generative AI, and mandatory e-invoicing requirements in 2023. These factors are driving businesses to accelerate the automation of financial, tax, procurement, and human resources functions. However, the success rate of digital transformation remains low, at only 16% overall, and even lower for traditional industries (4-11%). Key obstacles include a lack of leadership commitment, rigid corporate culture, and a scarcity of digital talent.

Rapid Growth Trajectory

LayerX has demonstrated impressive growth: its customer base expanded from 10,000 in February 2024 to 15,000 in April 2025, and its employee count nearly doubled from approximately 220 in October 2023 to about 430 in July 2025. The company is on track to achieve an Annual Recurring Revenue (ARR) run rate of $68 million (10 billion JPY), setting a new record for a Japanese SaaS company by surpassing the previous domestic record in less than 5 years, which took 8 years to achieve.

Investor Lineup

This funding round was led by Technology Cross Ventures (TCV), with participating investors including Mitsubishi UFJ Bank, Mitsubishi UFJ Innovation Partners, JAFCO Group, and Keyrock Capital. TCV has previously invested in renowned companies such as Netflix, Facebook, and Airbnb, and this investment marks its first foray into the Japanese market.

Customer Base and Use Cases

LayerX's Ai Workforce clients include large enterprises such as Mitsui & Co. and Mitsubishi UFJ Bank. The Bakuraku platform serves well-known companies like Ippudo Ramen, IRIS OHYAMA, Imperial Hotel, and Sekisui Chemical, demonstrating its broad applicability across various industries.

Future Growth Plans

LayerX plans to utilize this funding to accelerate its expansion into the US and European markets, hire 200 engineers, and establish partnerships with cloud service giants like AWS. The company has set a target of achieving approximately $680 million (100 billion JPY) in Annual Recurring Revenue by fiscal year 2030, with about half of that expected to come from its AI agent business.

Competitive Landscape

Globally, the back-office automation market is highly competitive, with LayerX facing strong rivals such as UiPath and Automation Anywhere. However, the company leverages its local advantage in Japan, emphasizing precision and data privacy protection, especially in the post-GDPR era. These characteristics serve as significant differentiating competitive advantages.

Technological Innovation Highlights

LayerX's Bakuraku platform differentiates itself through an AI-native user experience, continuous upgrades to its automation features, and a strong technical team that includes 12 former CTOs and a Kaggle Grandmaster. The company's adaptive algorithms can evolve with regulatory changes, which is crucial for global enterprises operating in complex compliance environments.

This funding not only reflects international investors' recognition of Japan's AI innovation capabilities but also signals a new phase in Japan's corporate digital transformation. As labor shortages become increasingly severe, AI-driven automation solutions will be a critical tool for Japanese businesses to enhance operational efficiency.