Japan's MPower backs pet devices maker

MPower qualified the deal as ESG-focused noting that it empathised with Rabo’s view that pets are “equal members” of the family. The idea is that caring for animals’ health contributes to the physical and mental health of their owners.

“We are also impressed by Rabo's thoughtfulness in terms of ESG – globally, there is growing awareness around animal welfare as a material ESG factor, and Rabo already takes into consideration the recyclability of materials used in their products,” MPower said in a statement.

Rabo’s core product is a collar device and smartphone app for cats called Catlog used by about 15,000 pets. It is connected to a database that is said to be the largest of its kind globally with some 4.4bn cat-related data points.

The investment included participation from several Japanese VC firms, including Strive, XTech Ventures, DG Ventures, and Headline Asia, formerly Infinity Ventures. They were joined by hygiene products maker Unicharm, which produces a range of pet products, including cat diapers.

Last year, Strive, XTech, W Ventures, Mizuho Bank, Mizuho Capital, and Sansei Capital Investment provided a JPY 600m round. Total funding to date comes to about JPY 2.2bn, which Rabo said makes it the best-funded domestic pet technology start-up.

MPower was founded by three women: Kathy Matsui, formerly vice chair and chief Japan strategist at Goldman Sachs; Yumiko Murakami, formerly head of the OECD Tokyo Center and before that a managing director at Goldman and Credit Suisse; and Miwa Seki, who worked in investment banking for Morgan Stanley and then led the Japan office for asset manager Clay Finlay.

The VC firm is targeting USD 150m for its debut vehicle and has won LP support from Sompo Holdings, Dai-ichi Life Insurance, and Sumitomo Mitsui Trust Holdings. The plan is to invest primarily in Japanese companies in tech-enabled sustainable living industries related to demographic shifts and advances in artificial intelligence and digitalization.

ESG is described more as a value-add factor than a deal sourcing filter. MPower claims it will be integrated into the overall strategy in business development areas such as leadership strengthening, go-to-market strategy, product value enhancement, and raising capital. Global expansion for portfolio companies is also a priority.

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

• Topics
• North Asia
• Consumer
• Technology
• Early-stage
• Japan
• MPower Partners
• ESG