Japanese startup LayerX has taken another big step forward in its mission to modernize enterprise back-office operations. The company, which develops AI-powered software to automate tasks like expense management, invoicing, and HR, announced that it has raised $100 million in a Series B funding round. The round was led by Technology Cross Ventures (TCV), marking the U.S. fund’s first-ever investment in a Japanese company.
This latest funding round puts LayerX in the spotlight as one of the fastest-growing enterprise tech companies in Japan. While the startup has not disclosed its valuation, both the size of the round and the valuation rank among the largest for a seven-year-old Japanese company at the Series B stage. Other participants in the round included MUFG Bank, Mitsubishi UFJ Innovation Partners, JAFCO Group, Keyrock Capital, Coreline Venture, and JP Investment. With this, the total funding raised by LayerX has now reached $192.2 million.
The Problem LayerX is Solving
Japan is undergoing a demographic shift. An aging workforce, labor shortages, and the adoption of new technologies like generative AI are forcing businesses to rethink how they handle everyday operations. At the same time, regulatory changes, including the introduction of mandatory e-invoicing in 2023, are pressuring companies to move away from outdated, paper-heavy processes.
Yet the path to digital transformation is rarely straightforward. Studies show that only 16% of digital transformation projects succeed, and in traditional industries the success rate falls to just 4–11%. The reasons are clear: weak leadership commitment, cultural resistance to change, and a lack of skilled digital talent. LayerX saw an opportunity to address these barriers with technology that is intuitive, adaptable, and AI-first.
How LayerX Helps Businesses
At the heart of the company’s offering is Bakuraku, an integrated automation platform that handles everything from expense management and invoice processing to corporate card management and compliance. More than 15,000 companies already use Bakuraku, including well-known names like Ippudo, IRIS Ohyama, the Imperial Hotel, and Sekisui Chemical.
LayerX’s CEO and founder, Yoshinori Fukushima, explained that the inspiration for Bakuraku came from his earlier experience working on digital transformation and blockchain projects. He noticed that invoice processing was still largely paper-based in Japan, a bottleneck that slowed down efficiency across industries. By introducing a SaaS platform with AI-driven features such as auto-entry, document splitting, and intelligent workflows, LayerX quickly gained traction in the market.
Today, Bakuraku not only automates routine tasks but also delivers a smooth, AI-native user experience. The company continues to improve its features while also building advanced tools like AI agents and AI-powered business process outsourcing (BPO).
Beyond Bakuraku, LayerX has also developed Alterna, a retail investment platform built in collaboration with Mitsui & Co., and Ai Workforce, a generative AI solution that helps enterprises unlock insights from data and streamline decision-making.
Rapid Growth and Future Ambitions
LayerX has grown at a pace rarely seen in Japan’s software sector. The company crossed 10,000 customers in February 2024 and expanded to 15,000 by April 2025. Its headcount has nearly doubled in less than two years, rising from 220 employees in late 2023 to about 430 by July 2025.
Financially, the company is also breaking records. LayerX is on track to hit $68 million (¥10 billion) in annual recurring revenue (ARR) faster than any SaaS company in Japan’s history. This achievement, known in the startup world as the T2D3 growth benchmark, usually takes years. LayerX expects to surpass the previous domestic record of reaching ¥10 billion ARR in under five years—something that previously took eight years.
Looking ahead, the company has even bolder ambitions. By 2030, it aims to generate $680 million (¥100 billion) in ARR, with nearly half expected to come from its AI agent business. The workforce is also projected to grow to around 1,000 employees by 2028, reflecting its expanding global ambitions.
Competition and Differentiation
Despite Japan’s push toward digitization, many companies still rely heavily on paper forms and Excel spreadsheets. This reliance has created a competitive but growing market. Domestically, LayerX competes with companies like Money Forward Cloud Keihi, freee, and Rakuraku Seisan. On the international stage, its rivals include large players such as SAP Concur, Brex, Ramp, Rippling, Spendesk, and Airbase.
What sets LayerX apart is its AI-first approach and its commitment to building a comprehensive, all-in-one platform. With a team that includes more than 12 former CTOs and even a Kaggle Grandmaster, the company has built a reputation for blending strong technical expertise with a user-friendly design.
The Bigger Picture
The story of LayerX is also the story of Japan’s struggle—and opportunity—with digital transformation. For decades, the country has been known for manufacturing excellence but has lagged behind in software and enterprise automation. Startups like LayerX show that this is changing. With backing from global investors like TCV and partnerships with giants like MUFG and Mitsui, the company is positioning itself at the center of Japan’s shift toward digital-first enterprise operations.
If LayerX succeeds in hitting its ambitious targets, it could become not just a national leader but also a global example of how AI can transform back-office work.
Past Highlights Leading Up to This Round
- 2018: LayerX founded by Yoshinori Fukushima, who previously built Gunosy, a news app that went public on the Tokyo Stock Exchange.
- 2023: Japan introduces e-invoicing requirements, creating momentum for back-office automation.
- November 2023: LayerX raises its Series A funding, setting the stage for rapid expansion.
- February 2024: Bakuraku surpasses 10,000 customers.
- April 2025: The platform grows to 15,000 customers, expanding deeper into the enterprise market.
- July 2025: Employee count reaches 430, nearly doubling in under two years.
- September 2025: LayerX raises $100M Series B, the largest of its kind for a company of its age in Japan.
In summary: LayerX’s $100 million funding round marks a new chapter not just for the company, but also for Japan’s enterprise software market. By betting big on AI and automation, the startup aims to simplify back-office work for thousands of companies and rewrite the playbook for digital transformation in Asia.