Deal focus: Seven Dreamers makes laundry robot a reality

When looking for a new business idea more than 10 years ago, Shin Sakane asked his wife if there was anything she really wanted that wasn’t available. A machine that folds the laundry, she told him. Suitably inspired, Sakane founded technology hardware company Seven Dreamers in 2014 and brought together artificial intelligence, robotics and image analysis technology to create Laundroid. Users simply load the refrigerator-sized machine with clean dry clothes and a robot arm inside folds them up.

Seven Dreamers recently closed a JPY2.5 billion ($22.8 million) Series C round to accelerate production of Laundroid, which is set to be released globally in the next three months. The company has now raised JPY10 billion to date. The round features international investors for the first time, including KKR co-founders Henry Kravis and George Roberts and Chinese conglomerate Fosun International. Japanese logistics player Suzuyo & Co, Daiwa Corporate Investment, and Shiga Bank have also put in money.

Seven Dreamers already has two inventions on the market: a tube inserted into the nose to stop snoring, and a carbon-fiber golf club shaft that is intended to reduce drag and facilitate a smooth flight of the ball. Kravis and Roberts happen to be big fans of its custom-made golf shafts, which prompted their interest in Laundroid. 

“They felt the difference when using our shafts compared to others they used in the past,” Sakane says. “Then they conducted some research on Seven Dreamers and found out we have two other products. They thought that we’re an interesting company so they decided to invest.”

The golf shafts are sold through Seven Dreamers’ two directly-owned stores in Japan as well as through a network of global dealers in the US, Europe and Asia. The anti-snoring device, which is manufactured in China, is distributed internationally via its online platforms. “The Chinese market is huge and important for us, but it’s very competitive. I wanted a good partner in China and someone introduced me to Fosun. They are interested in our products and we hope that they can help us grow in China,” says Sakane.

The anti-snoring device accounts for the bulk of Seven Dreamers’ overall revenue. Sakane declines to disclose sales figures for each segment, but he thinks Nascent and the golf shafts could eventually generate $1 billion and $100 million in annual revenue, respectively, while Laundroid could achieve $2 billion. A development agreement is in place with Daiwa House and Panasonic to commercialize Laundroid, and the KKR connection could lead to US partnerships.

“We expect to see more competitors in this space,” Sakane says. “But when we look at Johnson & Johnson – which introduced one-day disposable contact lenses in 1991 – it still has a 50% global market share after 25 years. This tells us consumers will always look for strong brands and high-quality products, even though they might be expensive.”

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• Topics
• North Asia
• Expansion
• Technology
• Japan
• Growth capital
• Fosun Group