Japan: Tokyo-based startup matsuri technologies Inc, which develops rental property management software to manage and operate private accommodation, has announced that it has closed a Series D round, securing 1.34 billion yen [JPY] or $8.65 million.
As part of the round, matsuri, which is the software-driven provider of StayX, a comprehensive solution that converts single-use rooms into multiple use, welcomes new investors in the shape of Vertex Ventures Southeast Asia and India, and other well-known investors in Japan. Existing investors also participated in the round.
The company wants to use the funding to forge new business partnerships and alliances, enhance its software offerings, increase the number of matsuri facilities, and invest in talent to accelerate StayX’s business growth.
In the near future, matsuri also plans to utilise the investment to fund its overseas expansion plans.
Tourism in Japan is on track to recover to almost pre-pandemic levels as the number of inbound visitors increases significantly, reaching a total of 25 million in 2023 according to the Japanese National Tourism Organisation [JNTO].
Nikhil Marwaha, senior executive director, Vertex Ventures Southeast Asia & India, said: “We are pleased to announce our investment into matsuri technologies Inc, an innovative company operating in Japan’s rapidly growing tourism industry [inbound and domestic market]. matsuri technologies Inc is an innovative company with a unique business model that meets B2B and B2C consumer needs, establishes long-standing relationships with supply chain partners, and is underpinned by a robust technology platform.
“By leveraging Vertex Ventures Southeast Asia & India’s deep network in SEA, we look forward to partnering with matsuri technologies Inc to accelerate growth within Japan and the wider region,” added Marwaha.
Toshiya Maruta, president and representative director, Japan Post Capital Co., Ltd, said: “We invested in matsuri technologies Inc because we are impressed with the company’s ability to connect technology with the real world by not only developing a variety of software in-house but also improving operations. We believe that the company’s mission to “continue to create meaningful new industries” and the Japan Post Group’s goal of a co-creation platform are like-minded, and we would like to promote collaboration by utilising the Japan Post Group’s strong network and wide range of business assets, including postal services, logistics, finance, and real estate.”
Yuta Hashimoto, senior manager, new business creation department, Mitsubishi Estate Co, and Katsuyuki Hasegawa, co-chairman partner, Prime Partners Co., said: “We are very pleased to have the opportunity to make an additional investment following the Series C. Under the leadership of president [Keita] Yoshida and his management team, the company’s business has grown dramatically over the past two years.
“StayX, which utilises technology to maximise the value of space by flexibly combining lodging, short-term rentals, and other uses, is expected to further develop as an infrastructure for creating new lifestyles to meet the needs of not only the rapidly increasing number of inbound travellers, but also the diversifying needs of users such as nomadic work and micro-tourism. StayX is expected to develop further as an infrastructure for creating new lifestyles to meet the needs of diverse users, such as nomadic work and micro tourism, as well as the rapidly growing inbound travel.
“The Fund and the Mitsubishi Estate Group will continue to support the growth of StayX as a partner in solving various issues in the real estate industry and contributing to the development of the industry,” they added.
The company’s software-based solution StayX is designed to maximise the value of space, by extension converting a vacant single space into flexible accommodation that has a variety of uses [e.g. for one night stays or on a one-month short-term rental basis].
Founded in 2016, matsuri previously raised $16 million / two billion yen in Series C funding in April 2022, just over a year after closing a Series B round.
Using its motto of “changing the shape of everything” and “living with technology”, the startup previously used the funding to develop the StayX platform, grow its corporate serviced apartment brand StayMe, and invest in its resort brand S-Villa.
