Tokyo-based cloud accounting and payroll service Freee has raised a funding of $30 million in Series C round from its existing investors DCM and Recruit Holdings along with participation from Japan Co-Invest Limited Partnership for the first time.
Raised amount will be used for sales, marketing and also for hiring talent.
Daisuke Sasaki, startup’s CEO and cofounder said, with his latest round of funding it gets Freee at a valuation of $250 million, as reported by VentureBeat. The company is planning for $1 billion IPO on the Tokyo Stock Exchange in the coming two to three years, as the company would be unlikely to raise any further funding in the coming 12 months.
Launched in March 2013, Freee has raised a total amount of $43 million till date including the latest round of funding. As per Daisuke’s estimation, Japan’s cloud accounting market is worth $2 billion. Adding Further he says, “A lot of global SaaS companies find it really hard to enter Japan. The one who is doing the best might be Salesforce or Google Apps for Work. This could also explain the low SaaS penetration here.”
Some of its competitors include Yayoi, Piped-Bits and MoneyForward. In December 2012, Freee raised a seed round of $500,000 from DCM. In 2013 it secured a funding of $2.5 million in Series A from DCM and Infinity Ventures following which it launched its initial product. It raised its Series B funding of $12 million in 2014 from DCM, Infinity along with participation from Singapore based investors Temasek Holdings’ Pavilion Capital and Recruit Strategic Partners.