estie, inc., a Japanese property technology startup focused on transforming the real estate industry through digitalisation, has raised JPY 2.8 billion (approximately US$20 million) in a Series B funding round. The company plans to use this investment to accelerate growth and expand into Southeast Asia, with Singapore as its first target market. The round was co-led by Vertex Growth, a venture capital fund supported by Temasek's subsidiary, Vertex Holdings, and the Development Bank of Japan (DBJ). estie's existing investors, including Globis Capital Partners, University of Tokyo Edge Capital Partners, and Global Brain, also contributed to this round.
Expanding digital solutions in real estate
estie, inc. plans to use the new funds to push forward its multi-product strategy, offering comprehensive digital solutions to its commercial real estate clients. A portion of the funds will be directed towards strategic mergers and acquisitions (M&A) as well as debt financing. In addition, the company aims to enhance its product offerings by integrating artificial intelligence (AI) with its proprietary data and software to improve both leasing and transaction processes, driving further digital transformation in Japan's real estate industry.
Founded in 2018, estie, inc. is capitalising on the opportunities emerging from the digital shift in Japan's commercial real estate market. The country boasts one of the world's largest real estate markets, with Tokyo ranked as the city with the highest institutional-owned real estate value in the world, valued at US$487 billion, according to LaSalle's 2023 analysis. Despite the significant asset pool, foreign investment in Japan's real estate sector has been hampered by limited access to data. In JLL's “Global Real Estate Transparency Index 2024,” Japan ranked 31st globally in terms of data availability, quality, and transparency. estie, inc. seeks to address this challenge by offering one of Japan's largest office data platforms, estie Market Research.
Moving into Southeast Asia
As part of its long-term growth strategy, estie, inc. is planning to expand into Southeast Asia, with Singapore being its initial focus. The company aims to provide Southeast Asian investors with detailed information on Japan's real estate market, bridging the gap in data transparency and availability. Over time, estie, inc. aims to position itself as a regional leader, offering a comprehensive data platform for global real estate investors seeking opportunities in Asia.
To achieve these goals, estie, inc. will leverage Vertex Growth's experience, resources, and extensive network to establish partnerships and business connections in Southeast Asia.
Leadership comments on funding and growth
Ei Hirai, Founder and CEO of estie, inc., expressed enthusiasm about the company's future, stating, “We are thrilled to welcome Vertex Growth as a new investor and deeply appreciate the continued support from the Development Bank of Japan, a key partner since our early days. The confidence shown by these leading funds from both Japan and Singapore reinforces our shared vision of building a digital infrastructure for the real estate industry, which underpins the economy, society, and the nation.”
Tam Hock Chuan, General Partner at Vertex Growth, echoed these sentiments, saying, “We are honoured to co-lead estie's Series B funding round. What Bloomberg has achieved for the financial industry, we believe estie is accomplishing for Japan's real estate sector. Their strong management team has created innovative solutions that address key pain points in an industry with significant growth potential. estie has shown strong growth, efficiency, and customer satisfaction in Japan, and we believe their model can be successfully adapted across Southeast Asia.”
With this latest funding, estie, inc. is well-positioned to become a key player in both the Japanese and Southeast Asian real estate markets, continuing to drive innovation and digital transformation.
