Japan’s ageing population and ongoing labour shortages are driving businesses to automate back-office functions such as finance, taxation, procurement, and human resources.
The nationwide adoption of electronic invoicing in 2023 and the rise of generative AI have increased pressures to digitise, yet many companies, especially in traditional sectors, struggle with cultural resistance and lack of digital talent.
In this context, Tokyo-based startup LayerX has attracted attention by using AI to streamline these processes and recently raised $100 million in a Series B funding round.
Founded in 2018 by Yoshinori Fukushima, a University of Tokyo machine learning expert and former founder of the news app Gunosy, LayerX developed Bakuraku—a SaaS platform that automates corporate spending workflows including expense management, invoice processing, and corporate card administration.
Fukushima noted, “Our goal was to move beyond legacy Excel sheets and paper forms, which are still surprisingly common in Japan today.”
The Series B investment, led by U.S. venture capital firm Technology Cross Ventures (TCV), is one of the largest for a seven-year-old Japanese startup, bringing LayerX’s total funding close to $200 million. Other participants include MUFG Bank and Mitsubishi UFJ Innovation Partners.
LayerX also offers Alterna, a digital securities platform made with Mitsui & Co., and Ai Workforce, an AI-driven workflow optimisation tool. Despite competition from domestic and global players like Money Forward Cloud, SAP Concur, and Harvey, LayerX stands out with continuous AI enhancements and a strong technical team including “more than 12 former CTOs and a Kaggle Grandmaster.”
The startup’s client base expanded from 10,000 to 15,000 users within a year, encompassing companies such as Ippudo and the Imperial Hotel. Their workforce has nearly doubled to over 430 employees.
The company expects to reach ¥10 billion in annual recurring revenue faster than any Japanese SaaS company, with Fukushima stating, “The growth benchmark known as T2D3 was achieved ahead of schedule, and we expect to surpass the previous domestic record… in under five years.”
LayerX aims for ¥100 billion in recurring revenue by 2030, with half coming from its AI agent business, and plans to grow its team to around 1,000 employees.