AID in $13m round for Japan home rental site

Domestic railway operator Keio Corporation also participated in the investment. Previous backers have included venture capital firm World Innovation Lab and Japanese internet services company Gaiax.

According to a statement, the capital will be used to develop business infrastructure and a global marketing plan that includes the launch of multilingual websites to attract foreign tourists. The Airbnb-style company wants to increase the number of its properties available for rent such that private home rentals become Japan's primary accommodation option.

The investment follows a government decision in March to implement programs aimed at attracting 40 million foreign tourists to Japan by 2020. This initiative doubles the previous target and is expected to be largely realized through the promotion of homestay business models.

Founded in 2012, Hyakusenrenma claims 46 employees and JPY784 million in capital holdings as of March 2016. Its lead brands include the websites Stay Japan and Tomarina, a service that specializes in providing rural accommodation during peak travel periods.

Hong Kong-listed AID typically focuses on investments in the media and entertainment sector. It reported a loss of HK$230.4 million ($29.7 million) for 2015, compared to a loss of HK$103.8 million the prior year. Revenue improved 186% during 2015 to HK$160.7 million.

Cool is a government-backed fund aimed at promoting overseas demand for Japanese products and services. Focus sectors include lifestyle retail, cuisine and tourism.

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• Topics
• North Asia
• Consumer
• Expansion
• Venture
• Japan
• AID Partners
• TMT