Japanese Fintech Start-up Xenodata Lab Secures $2.24 Million in A Round of Financing
In a significant development for Japan’s finance sector, Xenodata Lab, a cutting-edge artificial intelligence (AI) start-up specializing in natural language processing (NLP) analysis of financial data, has secured a substantial $2.24 million in the A round of financing. This strategic investment, totaling 250 million yen, is expected to propel the company’s product development and expand the scope of its analytical solutions, Xeno Flash.
Partners Join the Ranks
The round of financing saw the participation of prominent Japanese financial institutions, including Tokyo-Mitsubishi UFJ, commercial credit reporting company Teikoku Databank, Tokai Tokyo Financial Holdings, Okayama Securities, Kabu.com Securities, DBJ Capital, Mizuho, and SMBC Capital. These investors are eager to leverage Xenodata Lab’s innovative technology to analyze large customer transaction data and propose new investment programs by the end of 2017.
A Leap Forward for Xeno Flash
Xenodata Lab’s flagship product, Xeno Flash, is an enterprise data platform designed to enhance the functionality of unlisted Japanese companies. By combining XBRL (eXtensible Business Reporting Language) analysis, PDF form analysis, and PDF chart analysis, Xeno Flash attaches structured data to unstructured finance-related materials. This enables the extraction of meaningful financial information and facilitates the conversion of individual investors’ financial reporting for informed investment decisions.
Japan’s Fintech Ambitions
As the global Fintech landscape continues to evolve, Japan is actively pursuing its own development pace. According to Nikkei, Japanese investments in finance-related technology companies have reached $65 million in 2015, with recent investments from major financial institutions, such as Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ, and Sumitomo Mitsui Banking Group. This trend indicates a growing interest in Fintech and AI-powered financial services.
Collaborations and Investments
Mizuho Financial Group has also partnered with Softbank to leverage AI for customer data analysis, reducing the time required for personal finance reviews. Furthermore, the group has invested in bitFlyer, a virtual currency exchange, in collaboration with Sumitomo Mitsui Banking Corporation SMBC Venture Capital Group and other life insurance companies. This strategic investment aims to reduce remittance fees and enhance security technology for virtual currency transactions.
A Bright Future for Xenodata Lab
With this significant investment, Xenodata Lab is poised to accelerate its product development and expand its analytical solutions. The company’s innovative approach to financial data analysis is expected to contribute significantly to Japan’s Fintech ambitions and solidify its position as a leader in the industry.