LayerX Raises $100 Million to Accelerate AI-Driven Back-Office Automation for Japanese Enterprises

LayerX Raises $100 Million Series B to Automate Back-Office Operations in Japan

Japan faces growing pressure to automate finance, tax, procurement, and HR workflows due to aging demographics, labor shortages, the rise of generative AI, and the 2023 rollout of e-invoicing. Yet, digital transformation efforts often struggle—only about 16% succeed overall, with traditional industries lagging between 4% and 11%. The main challenges are weak leadership commitment, rigid company cultures, and a shortage of digital talent.

LayerX, a Japanese AI SaaS startup, is addressing these issues by providing an AI-driven platform to scale back-office automation. The company recently secured $100 million in a Series B funding round led by Technology Cross Ventures (TCV), marking the U.S. firm's first investment in a Japanese startup. This funding round is among the largest ever for a seven-year-old Japanese startup at this stage. Other investors include MUFG Bank, Mitsubishi UFJ Innovation Partners, JAFCO Group, Keyrock Capital, Coreline Venture, and JP Investment, bringing LayerX’s total raised capital to $192.2 million.

Key Products and Services

• Bakuraku: A platform that automates corporate spending workflows such as expense management, invoice processing, and corporate card operations. It serves over 15,000 companies.
• Alterna: A retail digital securities investment platform developed in collaboration with Mitsui & Co.
• Ai Workforce: A generative AI solution designed to optimize workflows and utilize enterprise data effectively.

Background and Market Position

Founded in 2018 by serial entrepreneur Yoshinori Fukushima, who has a machine learning background from the University of Tokyo, LayerX emerged from digital transformation and blockchain projects. Fukushima previously launched the news app Gunosy, which went public on the Tokyo Stock Exchange. The idea for LayerX arose from the inefficiency of paper-based invoice processing in Japanese enterprises. This insight drove the pivot to an AI-based SaaS platform with Bakuraku, which quickly gained traction through its AI-native user experience and strategic partnerships, including with MUFG.

Despite ongoing digitalization efforts, many Japanese companies still rely on paper and Excel for expense reimbursements and invoice management. LayerX competes domestically with platforms like 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 automation space, Harvey is a notable rival.

What Sets Bakuraku Apart

Bakuraku stands out through its AI-driven user experience, continuously enhancing automation features such as auto-entry and document splitting. The company is also investing in AI agents and AI-enabled business process outsourcing (BPO) services. Its team includes more than a dozen former CTOs and a Kaggle Grandmaster, underscoring its technical depth.

The platform offers a comprehensive suite covering expense management, invoice processing, corporate cards, workflows, e-ledger compliance, attendance, and receivables—all integrated into one solution.

Growth and Future Outlook

LayerX achieved its Series B funding less than two years after its Series A in November 2023. The Bakuraku Suite has seen rapid adoption, reaching over 15,000 customers by April 2025, up from 10,000 in February 2024. The company’s headcount nearly doubled from around 220 employees in October 2023 to roughly 430 by July 2025.

LayerX is on pace to hit $68 million (¥10 billion) in annual recurring revenue faster than any SaaS company in Japan’s history. It surpassed the T2D3 growth benchmark ahead of schedule and expects to break the domestic record for reaching this milestone in under five years, compared to the previous eight years.

Clients and Long-Term Goals

Clients for Ai Workforce include Mitsui & Co. and MUFG Bank, while Bakuraku serves well-known companies such as Ippudo, IRIS Ohyama, the Imperial Hotel, and Sekisui Chemical.

Looking ahead, LayerX aims for approximately $680 million (¥100 billion) in annual recurring revenue by fiscal year 2030, with about half expected from its AI agent business. The company also plans to expand its workforce to around 1,000 employees by 2028.

For those interested in AI automation and back-office workflow optimization, exploring targeted AI training can provide practical skills to support such digital transformations. Resources like Complete AI Training’s automation courses offer valuable insights and tools.