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Y Combinator, Global Brain Back Tailor, Japanese Headless ERP Startup – Technology Flow

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Tyler, a Japan-based back-end enterprise resource planning (ERP) platform, said today it has raised $4.3 million in seed funding from Y Combinator and Global Brain.

Founded in 2021 by Yo Shibata and Misato Takahashi, Tyler offers a headless ERP platform, meaning an ERP without a front end that instead delivers data from back-office systems like finance and procurement to other applications via an API, Shibata told Technology Flow.

According to Shibata, legacy ERPs offered by local players such as SAP, Oracle and NetSuite (which is owned by Oracle) and OBIC are difficult for customers to customize. One reason is that their systems are typically built for the world’s largest corporations, making them unsuitable and expensive for the projects of small and medium businesses, Shibata said, adding that ERP customers are often frustrated by the vast features and complexity. User interface, he added.

Japanese firms have high operating costs and slow growth. About 70% of software industry spending in Japan goes to building customized products, the company said.

Tyler’s API-first approach makes it easy for enterprises to integrate with another third-party SaaS tool and helps users build their tailor-made internal tools faster, Shibata said.

Serial entrepreneurs Shibata and Misato previously founded a retail-tech company, Spotlight, and sold it to Rakuten in 2013 for $20 million. They reunited last year for a big challenge with Tyler’s ERP platform and an ambitious goal of entering the global market. The goal is to reach $1 billion in revenue.

The Japanese startup currently has one customer and 10 employees, but plans to double its headcount to 20 employees by the end of this year. With the seed money, Shibata said, the company will improve its production efficiency and developer onboarding features. Additionally, the company plans to prepare the product for developers in the US and target sales in the US market by 2023.

“We aim to change the way organizations build internal business software,” says Shibata.

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