Japan's KDDI to acquire VC-backed Soracom
Soracom, a Japanese internet of things (IoT) communications platform that has several VC backers, will be acquired by domestic telecom operator KDDI Corporation.
KDDI will take a 100% stake, making Soracom a wholly-owned subsidiary, according to a release. Financial details were not disclosed, although Nikkei estimated the deal’s value at JPY20 billion ($181 million). The acquisition is intended to combine KDDI’s telecommunications expertise with Soracom’s network of business customers to develop a global IoT platform.
Soracom spun out from NTT Docomo in 2014 and launched its platform in 2015 with seed funding from World Innovation Lab (WiL) and Infinity Venture Partners, both of which participated in a JPY2.4 billion round for the company the following year. Also last year, Pavilion Capital, a private equity unit of Singapore’s Temasek Holdings, committed JPY600 million to Soracom to support the establishment of a Singapore subsidiary.
The company’s platform combines connectivity solutions with cloud storage, allowing enterprise customers to build IoT systems that can scale quickly. It has more than 7,000 customers in Japan, including taxi service Nihon Kotsu and imaging products maker Konica Minolta. Soracom’s service is available in over 120 countries; the company also has offices in the US and Europe.
KDDI has its own IoT service, but it has focused on a different segment of the market to Soracom, emphasizing partnerships with a few large companies such as Toyota, with which it has partnered for a connected cars initiative. The company hopes expanding its IoT business can provide a counterweight to its declining mobile service subscription base.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.