WiL aims high with Japan’s ‘next Nintendo’

Fast-growing mobile app maker Gumi is latest great hope of a resurgent Japan - or at least that's the hope of Gen Isayama, founder of WiL (World Innovation Lab), which led a $50 million funding round for the company. The round - which included Sega Networks - brings Gumi's total capital raised to $94 million. The investor roster also features Incubate Fund, East Ventures, DBJ Capital, Nissei Capital, B Dash Ventures, Shinsei Bank and Jafco Ventures.

"I have come across so many Japanese game developers over the past 10 years but Gumi has a unique profile," says Isayama, who was a partner with DCM in Japan before founding WiL in Silicon Valley last year. "To my mind they have the potential to become the next Nintendo."

Isayama's confidence is arguably justified. Gumi is in the process of achieving what so many Japanese mobile game start-ups have failed to do - a breakthrough in the US market. One title in particular, role-playing game (RPG) Brave Frontier, has been a big hit across the Pacific, becoming one of the top 15 bestselling RPGs on the App Store. It previously topped the charts in Japan and Korea.

Gumi was set up in 2007 and has about 10 games under its belt. With an office in Singapore and plans to expand further, it is one the few Japan mobile start-ups - along with Gree and DeNA - to make significant headway overseas.

"If you look at most Japanese mobile start-ups, each one is doing something interesting but I would say around 99% have a very domestic-focused business," says Isayama.

Despite competition from other investors in Asia and the US, Isayama says that WiL, which has strong ties to the founding team, was best-placed to support Gumi's US expansion alongside Sega. "The fact we speak the same language also made things easier," he adds.

This is not Gumi's first attempt at international expansion. In 2012, the company ranked top of a Deloitte list of Japan's fastest-growing tech start-ups, with revenues expanding 3,950%. An office opened in the US but then Gumi scaled back. "This was before Brave Frontier," Isayama says. "If you think about future growth, they will inevitably need a presence in Silicon Valley and that is our mission."

Now Gumi has the traction - and user base - it previously lacked, there appears to be little standing between the company and an IPO on first section of the Tokyo Stock Exchange later this year. According to rumors, the offering could be worth as much as JPY100 billion ($1 billion).

 

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Venture
• Japan
• TMT
• Venture