estie, inc. Raises a JPY 2.8B Series B round from Vertex Growth and Development Bank of Japan to Fuel Rapid Expansion

Tokyo, Japan, 8th October 2024 – estie, inc.* a leading Japanese property technology startup aimed at redefining the real estate industry through digital transformation (DX) announced it has closed a JPY 2.8B (approximately USD 20M*) Series B round to accelerate its growth and expand its market presence in Southeast Asia.

The latest round was led by Vertex Growth, a growth-stage venture capital fund anchored by Vertex Holdings, a subsidiary of global investment company Temasek, and Development Bank of Japan (DBJ). Existing investors such as Globis Capital Partners (GCP), University of Tokyo Edge Capital Partners (UTEC), and Global Brain (GB) also participated in this round.

The new funding will be used to accelerate its multi-product strategy, to deliver a comprehensive digital solution for commercial real estate clients. This capital injection will facilitate strategic mergers and acquisitions (M&A) to leverage on debt financing opportunities. Beyond M&A, estie, inc. will continue recruiting top talents to maintain its competitive edge and enhance new product development. By integrating artificial intelligence (AI) with its proprietary data and software, the company aims to create innovative solutions in both leasing and transactions, to further drive digital transformation in Japan’s real estate industry.

Founded in 2018, estie, inc. is seizing the significant opportunities arising from the digital shift in Japan's commercial real estate industry. Japan boasts one of the world’s largest real estate markets, anchored by Tokyo – the city with the largest real estate asset value in the world*. In the international arena, Japan ranks third in the commercial real estate market, following the United States and China. Despite the large asset pool, Japan’s access to global capital is limited by data availability that foreign investors are accustomed to elsewhere. According to JLL's "Global Real Estate Transparency Index, 2024", Japan ranks thirty-first globally when it comes to market fundamentals data availability, quality, depth and transparency. estie, inc. aims to bridge this gap by providing a vast data infrastructure that includes one of Japan’s largest oaice data platform – estie Market Research.

As part of its longer-term growth strategy, estie, inc. plans to expand its presence in Southeast Asia starting with Singapore. The company’s near-term objective is to provide Southeast Asian investors with access to comprehensive information on Japan’s real estate market. Looking ahead, estie, inc. aspires to establish itself as a regional player that oaers a comprehensive one-stop data platform for global real estate investors seeking opportunities across Asia. For this, estie, inc. will leverage on Vertex Growth’s combined experience and resources from the Vertex global network to seek partners and build business relationships.

Ei Hirai, Founder and CEO at estie, inc., shared his enthusiasm, stating, “We are thrilled to welcome our new investor Vertex Growth, a growth-stage venture capital fund. We are equally honoured to receive continued support from our existing investors, including Development Bank of Japan, a key partner since our early days. The confidence placed in us by two leading funds, from Japan and Singapore, is a testament to our growth and shared vision of building a digital infrastructure for the real estate industry, which serves as the foundation of the economy, society, and nation.”

Tam Hock Chuan, General Partner at Vertex Growth, shared his optimism, remarking, “We are privileged to co-lead estie, inc. Series B round, a company we have been monitoring with keen interest. What Bloomberg has done for the financial industry, we believe estie, inc. is doing for the Japanese real estate industry. Its strong, industry-savvy management team has created solutions that resolve many of the industry pain points in a market with exponential growth opportunities. As a result, despite the volatility in the SaaS industry, estie, inc. has achieved high growth rates, best-in-class efficiency metrics, and amazing customer satisfaction scores. Given its successful implementation in Japan, we believe this business model can be adapted in various markets in Southeast Asia. Through this Series B round, Vertex Growth will work together with estie, inc. management and fellow investors to support the company's growth ambitions and share our global perspectives and best practices.”

* Note to media:

• Conversion rate is based on 1 JPY = 0.0070 USD

• The official company name is “estie, inc.” with the lower capitalisation indicated accordingly.

• According to LaSalle’s analysis in 2023, institutional-owned real estate value in Greater Tokyo is the largest in the world being estimated at USD 487B, followed by New York Combined Statistical Area.

About estie, inc.

estie, inc. provides real estate developers, institutional investors, and others with services that facilitate industry transactions. By solving the data distribution challenges faced by the commercial real estate industry through digitalisation, the company solves a series of business issues by providing multiple interoperable services simultaneously. The market research solutions that estie provides are industry-leading commercial real estate data analysis platforms in Japan and estie, inc. aims to redefine the real estate industry through digital transformation (DX).

For more information about estie, Inc., please visit: https://www.estie.jp/

About Vertex Growth

Vertex Growth is dedicated to partnering with exceptional entrepreneurs and promising companies on the cusp of growth. The firm provides expansion capital to realise the companies’ vision of creating a category champion that is enduring and transformational. Part of the Vertex global network of venture capital funds, Vertex Growth accesses opportunities emerging from the leading innovation hubs across the world and drive significant value by working closely with the Vertex ecosystem of portfolio companies and partners.

For more information about Vertex Growth, please visit: https://vertexgrowth.com

For Media Enquiries

Bernice Ong
communications@vertexholdings.com

H/Advisors Klareco
klareco-vertex@h-advisors.global

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