Japan VCs back $100m round for local impact investor Gojo
Japanese impact investor and microfinance institution Gojo & Company has secured a USD 100m Series E from a group of local VC investors including Global Brain and Globis Capital Partners.
The latest tranche, amounting to USD 30.8m, featured Globis, SMBC Venture Capital, and Samurai Incubate, a Japan-Africa focused investor, as well as Singapore-based and Daiwa Securities-backed ACA Investments.
It follows a $23m investment in February from Cool Japan Fund and a USD 47.6m investment last year including Global Brain, ACA, and Samurai. The latter tranche also featured SMBC Nikko Securities, GMO VenturePartners, TGVest Capital, Translink Capital, QR Investment, Miyagin Venture Capital, and Sumisho Venture Partners.
Gojo has now raised USD 215m since its inception in 2014, including USD 55m from development finance institutions such as Finland’s Finnfund, Netherlands-based FMO, and Proparco of France. Earlier investors also include Jafco, Japan International Cooperation Agency, Dai-ichi Life Insurance, SBI Investment, and Baillie Gifford & Co.
The company has USD 759m of assets under management in developing markets, with more than 10,000 employees serving some 175m people. It claims to be profitable with income having increased 135% year-on-year to JPY 18.6bn (USD 127.2m) as of March.
Gojo aims to promote financial inclusion by encouraging the creation of micro and small to medium-sized enterprises and then supporting them with finance, management, and technology. It is active across Asia and Africa with a special interest in India and Tajikistan. Recent geographic expansion includes the acquisition of Chamroeun Microfinance in Cambodia. The plan is to be active in 50 countries by 2030.
The company was founded by CEO Taejun Shin and CIO Sanjay Gandhi. Shin previously invested with Morgan Stanley Private Equity and Unison Capital. Gandhi is a 17-year microfinance industry veteran who previously worked with AF Ferguson, now part of Deloitte. Recent hires include Sohil Shah, formerly of Indian impact investor Aavishkaar, as head of VC.
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