Net Protections Launches Capital Alliance with Singapore Fund Pavilion Capital, Raising Approximately One Billion Yen and Strengthening Financial Base

Net Protections Holdings, Inc. (“Net Protections”; headquartered in Tokyo’s Chiyoda Ward; Shin Shibata, CEO) has issued new shares through a third party allotment to Pavilion Capital, in a capital raise valued at approximately one billion yen. In addition, funds served by Advantage Partners Inc. have sold shares of Net Protections to Pavilion Capital for approximately one billion yen. Through this financing round, Pavilion Capital has acquired 2.2% of Net Protections’ total shares.

Pavilion Capital which is regarded as one of the top investment funds and is known for its wide network of investments throughout Southeast Asia. We believe that this capital alliance with Pavilion Capital will support our strategies for business expansion in Southeast Asia.
We intend to use the proceeds of this capital raise to strengthen our financial base, support our marketing and promotion initiatives and develop new features for our services.

Net Protections is a leading provider of Buy Now Pay Later (BNPL) services which guarantees full payment with zero risk for merchants and has consistently demonstrated outstanding business performance, large business scale and a tremendous quantity of accumulated data. It is the number one BNPL player in Japan. We have closely monitored Net Protections’ activities and look forward to future growth. Pavilion Capital is confident in Net Protections’ leading position in the Japan BNPL industry and will provide great support to continue to build the company and its businesses both in Japan and overseas.

We are excited to enter into this capital alliance with Pavilion Capital and appreciate their recognition of our position as the leading provider of BNPL in Japan.
With the resources and business networks of Singapore-based Pavilion Capital, which has achieved numerous successful investments, collaboration between our two companies will accelerate the growth of our business and company value in Japan and overseas. This alliance will help us to continue to provide excellent services to both merchants and users.
As a multi BNPL service provider with the mission to “Create New Standard” for every user, we will continue to grow and expand our business.

Net Protections, Inc is a pioneer in the field of Credit Tech that strives to utilize technology to make every business transaction smoother than ever before. In 2002, Net Protections (NP) released NP Atobarai, BNPL service that guarantees risk free payment service for merchants in Japan. For the year ended March 31, 2021, NP Atobarai’s annual transaction volume has kept increasing 116% as compared to the previous fiscal year. NP Atobarai holds a dominant market share(※A) and is used by numerous enterprises in Japan with over 15.8 million unique users. (※B) Also, it has processed more than 280 million transactions to date. In 2011, NP introduced NP Kakebarai, BtoB BNPL service that simplifies BtoB transaction process and guarantees risk free using its accumulated know-how. NP Kakebarai has grown 127% yearly and plays as the dominant BtoB payment service provider in Japan. In 2017, Net Protections launched atone, BtoC BNPL service with membership benefits that offers better shopping experience. In 2018, NP launched AFTEE, BtoC BNPL service in Taiwan. NP has accumulated transaction data since its first service launched, which enables the pursuit of new opportunities in the field of big data analysis.

Company Name 　　　 ：Net Protections, Inc.
Representative　　　：Shin Shibata, CEO
Website　　　　：https://corp.netprotections.com/
Business Outline　　：BtoC E-Commerce Buy Now Pay Later (BNPL) Service “NP Atobarai”
BtoB BNPL Service “NP Kakebarai”
BtoC BNPL Service “NP Atobarai air” for day-to-day services
BtoC BNPL Service with membership benefits “atone”
BtoC BNPL Service in Taiwan “AFTEE”
Reward Point Program: NP Point Club
Founded 　　　　：January, 2000
Capital 　　　：JPY 100 million
Headquarter 　　　：〒102-0083
SUMITOMO FUDOSAN KOJIMACHI FIRST BUILDING 5F, 4-2-6 Kojimachi, Chiyoda-ku, Tokyo 102-0083 Japan

※A) Surveyed Japan's top 300 companies in the “75th EC and mail order sales ranking” published in Tsuhan Shimbun as of Jan. 7, 2021. Based on the portion of merchants outsourcing BNPL operations that use NP Atobarai as of Mar. 1, 2020.
※B) Source: Company information.The number of annual unique users: the number of users based on the matching of names and phone numbers during a fiscal year (Apr.1, 2020 to Mar.31, 2021)

Direct any inquiries regarding this release to:
Nayuta Nakahori, Shohei Takada
EMAIL：pr@netprotections.co.jp