Japanese artificial intelligence (AI) software provider LayerX has successfully closed a $100 million Series B funding round, positioning the firm to significantly expand its automation solutions for critical back-office functions. This substantial investment directly addresses the pressing labor shortages and growing demand for digital efficiency across Japan's industrial sectors, which continue to struggle with traditional paper-based processes.
The funding round, led by Technology Cross Ventures (TCV) in its inaugural investment in a Japanese startup, underscores the urgent need for innovation in enterprise administration. Japan's aging demographics, coupled with a 2023 shift to mandatory e-invoicing, are compelling companies to automate finance, tax, procurement, and human resources. However, only a small fraction of digital transformations succeed in traditional industries, primarily due to weak leadership commitment and a shortage of digital talent.
LayerX's flagship offering, Bakuraku, is an AI SaaS platform – a software solution delivered over the internet via subscription – that automates corporate spending workflows. It encompasses expense management, invoice processing, and corporate card operations, serving over 15,000 companies, including major industrial players like IRIS Ohyama and Sekisui Chemical. This platform significantly reduces manual data entry, streamlines approvals, and enhances compliance, directly boosting efficiency for manufacturers, logistics providers, and construction firms grappling with complex, paper-intensive administrative tasks.
With an additional offering, Ai Workforce, a generative AI solution designed to streamline workflows and leverage enterprise data, LayerX is poised for rapid expansion. The company plans to reach $680 million in annual recurring revenue by 2030, with a substantial portion expected from its AI agent business, signaling a robust future for AI-driven operational transformation in Japan's foundational industries.
