Kaia has just announced that they received funding from some of the top crypto VCs. Though the amount has yet to be disclosed, we do know that the investment was led by Blockchain Capital and 1kx. Since its inception Kaia has introduced a new model for web3 user acquisition by prioritizing access over technical differentiation. Unlike many blockchain projects that compete for the same limited pool of users and developers, Kaia focuses on expanding the total addressable market through strategic distribution.

Kaia Receives Funding From Top Crypto VCs

More About Kaia

Launched in August 2024, Kaia is the product of a merger between two established blockchains—Klaytn and Finschia—backed respectively by Kakao and LINE, two of the most dominant superapps in Asia. Klaytn previously facilitated over one billion transactions across more than 300 decentralized applications, spanning DeFi, real-world assets, and digital entertainment.

It also participated in the Bank of Korea’s central bank digital currency pilot. Finschia, on the other hand, integrated web3 services like a non-custodial wallet and an NFT platform directly into LINE, offering blockchain-based services to its existing user base. The merger of these two chains has resulted in Kaia gaining native integrations with both KakaoTalk and LINE Messenger—platforms used daily by hundreds of millions of people across South Korea, Japan, Taiwan, and Thailand.

Kaia Receives Funding From Top Crypto VCs

Superapps as a Channel for Mass Adoption

KakaoTalk and LINE serve as the primary communication and service platforms for a significant portion of Asia’s digital population. KakaoTalk is used by approximately 95% of South Korea’s 52 million residents, with users opening the app more than 50 times daily. The app ecosystem surrounding KakaoTalk includes services such as KakaoPay, Kakao T, and KakaoBank, making it a central part of everyday life.

Similarly, LINE holds significant market share in Japan, Taiwan, and Thailand. In 2024, 85% of Thai internet users were active on LINE, while in Taiwan, 92% of people aged 15 to 65 had used the app within a week. LINE’s offerings extend into digital payments, games, comics, and other digital services, contributing to a highly engaged user base. Together, KakaoTalk and LINE provide Kaia with immediate access to over 250 million users in markets that already exhibit high digital spending behavior.

Lowering Barriers for Non-Crypto Users

Kaia’s value proposition lies in its ability to meet users where they already are, through platforms they use daily. The Mini Dapp ecosystem introduced by Kaia has shown promising early results. Within three months of launch, Kaia became the most active EVM-compatible blockchain in terms of daily active addresses. Mini Dapps launched through LINE saw high levels of engagement and spending, with some applications achieving average revenue per paying user figures up to three times higher than on other platforms.

The onboarding process has been optimized to reduce friction. Kaia’s integration allows users to access web3 applications without navigating away from KakaoTalk or LINE, eliminating the need for external wallets or upfront crypto knowledge. In its first month, 32% of payments for Mini Dapp items were made using fiat methods such as credit cards. This integration of fiat payments reflects the importance of accommodating non-crypto users on familiar terms.

Kaia Receives Funding From Top Crypto VCs

Application Development and Local Market Fit

Understanding regional user preferences has informed Kaia’s approach to application development. Initial applications on the platform reflect popular genres and styles, including RPGs and action games that resonate particularly well with Japanese and Taiwanese users. This localized strategy allows Kaia to offer more compelling alternatives to simple, speculative blockchain apps.

Kaia’s approach emphasizes usability and content quality over short-term token incentives. To support this, the platform has implemented tools like Kaia Wave, a developer support initiative in collaboration with LINE NEXT. This program provides onboarding support, user experience optimization, and targeted marketing via LINE’s ad infrastructure and official accounts. Developers can promote new applications directly within LINE’s ecosystem, reaching a well-defined audience at a lower customer acquisition cost compared to traditional crypto channels.

User and Developer Traction

Since the launch of its Mini Dapp portal in January 2025, Kaia has seen measurable growth across several metrics. The platform now hosts 64 dapps out of over 800 that have applied. It has attracted 41 million unique users and generated a total gross merchandise volume of $6.3 million in crypto payments, excluding fiat-based transactions. Its top three dapps report an average revenue per paying user of $1,700, underscoring the strong monetization potential in these markets.

Testimonials from developers suggest that Kaia offers a unique growth opportunity. For instance, Boxing Star X onboarded over 700,000 users via LINE within weeks of launch, with daily revenue per paying user reaching levels far above standard benchmarks. Other projects, such as Bombie.xyz, have also seen substantial revenue performance, citing Kaia’s reach and user base as key drivers.

Kaia Receives Funding From Top Crypto VCs

Beyond Gaming Toward On-chain Services

While Kaia has initially focused on gaming to attract users, the roadmap includes broader financial services and decentralized applications. In April 2025, Kaia introduced a stablecoin integration on LINE, allowing users to earn yield on deposits in a few simple steps. This service is particularly relevant in Japan, where interest rates are low and there is high demand for USD-denominated investments.

Kaia is also working on launching a set of curated DeFi protocols in the second half of 2025. These will include offerings in lending, perpetual exchanges, payments, and asset-backed yield products. Additionally, Kaia is developing infrastructure to enable seamless conversion between the Korean won and stablecoins, aimed at increasing the use of crypto for everyday transactions in South Korea.

Kaia Receives Funding From Top Crypto VCs

Platform-Oriented Strategy for the Next Wave

The most successful crypto products to date have been those with a strong top-of-funnel strategy—centralized exchanges and wallets that manage user onboarding. However, Kaia illustrates that the next stage of adoption may be driven by the applications themselves, especially those embedded in already popular platforms.

While many new chains attempt to compete through technical differentiation, Kaia focuses on distribution, offering developers instant access to millions of users and reducing dependency on crypto-native acquisition channels. The results so far suggest that this strategy may prove more effective for driving sustained adoption across a wider audience.

Kaia Receives Funding From Top Crypto VCs

Conclusion

Kaia represents a shift in how the web3 industry approaches user acquisition and engagement. By integrating directly into Asia’s most used superapps, Kaia provides developers with access to a vast and highly engaged user base. Its focus on seamless onboarding, local content, and diversified applications offers a clear path forward for bringing crypto beyond its current core audience. With continued infrastructure development and growing traction, Kaia is positioned as a leading example of how real-world distribution advantages can support long-term growth in the decentralized application ecosystem.

Source: Nichanan Kesonpat