In a significant move within the enterprise technology sector, Japanese AI SaaS startup LayerX has successfully raised $100 million in a Series B funding round. This round was led by Technology Cross Ventures (TCV), marking the U.S. investment firm’s inaugural venture into the Japanese startup ecosystem. The funding round also saw participation from prominent investors such as MUFG Bank, Mitsubishi UFJ Innovation Partners, JAFCO Group, Keyrock Capital, Coreline Venture, and JP Investment, bringing LayerX’s total capital raised to $192.2 million.
Addressing Japan’s Digital Transformation Challenges
Japan’s corporate landscape is currently navigating a complex digital transformation journey. Factors such as an aging workforce, labor shortages, the rapid adoption of generative AI technologies, and the 2023 implementation of e-invoicing systems are compelling companies to automate critical functions in finance, taxation, procurement, and human resources. Despite these pressures, only 16% of digital transformation initiatives in Japan achieve success, with traditional industries reporting even lower success rates of 4–11%. The primary obstacles include insufficient leadership commitment, entrenched corporate cultures resistant to change, and a scarcity of digital talent.
LayerX aims to bridge this gap by offering an AI-driven SaaS platform designed to streamline and automate back-office operations, thereby enhancing efficiency and reducing manual workload.
Innovative Product Suite
LayerX’s flagship product, Bakuraku, is a comprehensive platform that automates corporate spending workflows. It encompasses functionalities such as expense management, invoice processing, and corporate card operations, serving over 15,000 companies. In collaboration with Mitsui & Co., LayerX developed Alterna, a retail digital securities investment platform. Additionally, the company offers Ai Workforce, a generative AI solution tailored to optimize workflows and leverage enterprise data effectively.
Founder’s Vision and Company Evolution
Established in 2018 by serial entrepreneur Yoshinori Fukushima, LayerX originated from Fukushima’s digital transformation and blockchain projects. With a background in machine learning from the University of Tokyo and experience launching the news app Gunosy—later listed on the Tokyo Stock Exchange—Fukushima identified a critical bottleneck in Japan’s enterprise workflows: the reliance on paper-based invoice processing. This realization prompted LayerX to pivot towards a SaaS model, leading to the development of Bakuraku. The platform’s AI-native user experience quickly gained traction, facilitating strategic partnerships with major entities like Mitsubishi UFJ Financial Group (MUFG) and setting the stage for the recent funding round.
Competitive Landscape and Market Position
Despite ongoing digitalization efforts, many Japanese companies continue to depend on paper and Excel for expense reimbursements and invoice processing. Domestically, LayerX competes with platforms such as Money Forward Cloud Keihi, freee, and Rakuraku Seisan. On the global stage, competitors include SAP Concur, Rippling, Brex, Ramp, Spendesk, and Airbase. In the AI Workforce domain, LayerX faces competition from companies like Harvey.
Technological Differentiation and Team Expertise
Bakuraku distinguishes itself through an AI-driven user experience, continuously enhancing automation features like auto-entry and document splitting. The company is also investing in AI agents and AI-enabled business process outsourcing (BPO). LayerX’s team boasts over 12 former Chief Technology Officers and a Kaggle Grandmaster, underscoring its deep technical expertise. Bakuraku offers an integrated platform covering expense management, invoice processing, corporate cards, workflows, e-ledger compliance, attendance, and receivables, all within a single solution.
Growth Trajectory and Future Outlook
Since its Series A funding in November 2023, LayerX has experienced significant growth. The Bakuraku Suite surpassed 10,000 customers in February 2024 and reached 15,000 by April 2025, with an increasing number of enterprise clients. The company’s workforce expanded from approximately 220 employees in October 2023 to around 430 by the end of July 2025.
LayerX is on track to achieve $68 million (¥10 billion) in annual recurring revenue faster than any SaaS company in Japan’s history. The company anticipates reaching this milestone in under five years from product launch, surpassing the previous domestic record of eight years. Ai Workforce counts Mitsui & Co. and MUFG Bank among its clients, while Bakuraku serves notable customers such as Ippudo, IRIS Ohyama, the Imperial Hotel, and Sekisui Chemical.
Looking ahead, LayerX aims to achieve approximately $680 million (¥100 billion) in annual recurring revenue by fiscal year 2030, with about half expected to come from its AI agent business. The company also plans to expand its workforce to around 1,000 employees by 2028.
