Block was formerly known as Square.

Jack Dorsey’s Block Inc (NYSE: SQ), formerly Square, has participated in a $41.2 million Series D round raised by Japanese fintech and challenger bank Kyash. The transaction marks the first investment by Block in an Asian company. The funding valued the startup at about $107.7 million. (COIN TELEGRAPH)

Block’s support won gratitude from Shinichi Takatori, Kyash’s president and CEO, who said Block was “a leader in financial innovation in the U.S. and other countries.”

Other participants in the Kyash funding included Japan Post Investment Corporation, Altos Ventures Goodwater Capital, StepStone Group, Greyhound Capital, SMBC Nikko Securities, JAFCO Group, and Mitsui Sumitomo Insurance Capital.

In March 2020, despite the outbreak of the virus, Kyash clinched a $45 million Series C funding deal co-led by Greenspring Associates and Goodwater Capital. That money was opportunely timed and helped the company address the spike in demand for cashless services due to the pandemic.

Kyash: Use of funds

Kyash will use the latest funding to boost its employee strength, expand its product lineup, and strengthen service operations. Its financial services are focused on the Japanese retail market following from the government’s award of a prepaid debit cards license in 2020 and a fund transfer license in 2017.

Accordingly, Kyash offers app-based services including online and offline payments, remittances, and ATM withdrawal services. It also issues Visa virtual and physical pre-paid debit cards.

Taikuma Baba, managing director of investor Japan Post Investment Corporation, commented: “Kyash’s user-first, mobile-first philosophy and design is a key component of the global, irreversible trend toward unbundling traditional financial institutions and rebundling them with technology.”

Related Story: Square Inc, The Company, Renames Itself Block