WAKU Secures 180 Million Yen in Pre-Series A Funding Round

WAKU, headquartered in Okayama, Japan, has successfully raised a total of 180 million yen during its pre-Series A funding round. This funding was led by several investors including ANOBAKA, Keio Innovation Initiative (KII), Asahi Media Lab Ventures, Chugin Capital Partners, AgVenture Lab, and individual investors. The funds will be allocated to enhance the company's innovative agricultural materials, particularly those utilizing glutathione, aimed at improving crop resilience against heat stress and boosting yields.

Background of Funding

WAKU's mission is to develop next-generation agricultural materials that utilize glutathione to enhance crop performance in challenging environmental conditions. The newly secured funds will be utilized for three main purposes:

- Research and development of new products leveraging glutathione.
- Expansion of the sales organization to better serve domestic producers.
- Preparation for international expansion, especially in regions undergoing growth in biostimulant adoption, such as the EU.

Currently, over 70 agricultural producers across Japan, including a significant green onion producer in Fukaya City, Saitama Prefecture, are testing and implementing WAKU's products. The utilization of glutathione is anticipated to address practical challenges posed by climate change, enhancing quality and root growth while improving the survival rates of seedlings.

Market Background and Future Prospects

In recent years, agricultural production both domestically and internationally has faced serious setbacks due to extreme weather events and heat stress. In Japan, the impact of scorching weather has led to noticeable declines in the yields and quality of staple crops like rice and vegetables. Additionally, rising fertilizer prices and labor shortages have increased the challenges faced by the agricultural sector.

In response to these issues, there is growing interest in biostimulants, a new category of agricultural materials that enhance crops' stress resilience from within. Regulatory developments in Europe are paving the way for greater use of these resources, which are projected to experience annual market growth of 11.8% globally through 2028.

WAKU has been focusing on developing and promoting its proprietary materials based on glutathione, a naturally occurring compound in plants. While WAKU is a homegrown technology, the company is already contemplating international expansion, with testing processes initiated primarily in the EU.

Additionally, WAKU aims to branch out its glutathione technology beyond agriculture, exploring applications in forestry, algal cultivation, and cosmetics, thus contributing to the creation of sustainable industries.

Comments from Investors

- Takahiro Nagano, CEO of ANOBAKA: This funding announcement marks a significant milestone for WAKU as they enter the next phase. Having grown steadily despite challenges since ANOBAKA's initial seed investment, we look forward to seeing WAKU become a leading agritech startup in Japan.

- Naoto Tomono, Principal at KII: The use of glutathione as a biostimulant presents an innovative solution to pressing agricultural challenges exacerbated by climate change. We are confident that WAKU's endeavors will contribute significantly to sustainable agriculture and food supply stability.

- Kentaro Shiraishi, Partner at Asahi Media Lab Ventures: WAKU’s commitment to transforming agriculture with glutathione addresses major global agriculture issues, and we resonate strongly with their approach to product development based on end-users' insights. We eagerly anticipate their continued success.

- Satoshi Ishimoto, Director at Chugin Capital Partners: I am excited to announce that we are not just investors but partners in WAKU’s future endeavors. WAKU is committed to harnessing the potential of glutathione to deepen its roots in society and grow far and wide.

- Hiroki Ogino, Chairman of AgVenture Lab: As part of the JA Accelerator Program, we have partnered with WAKU to support their journey toward social implementation. We expect their initiatives to benefit both agriculture and forestry as well as provide technical advancements in livestock and environmental sectors.

About WAKU

Established in July 2022, WAKU is an agribio venture dedicated to protecting global food security through glutathione. Since its inception, the company has concentrated on developing biostimulants that harness the photosynthetic activation, stress resistance, and growth enhancement properties of glutathione.

Company Overview

- Company Name: WAKU Inc.
- Location: ORIC Room 101, 5303 Haga, Kita-ku, Okayama, Japan
- CEO: Ryo Watanabe
- Founded: July 2022
- Business: Research, development, manufacturing, and sales of glutathione-based biostimulants and animal feed.
- Website: WAKU Official Site