Smart Repair Secures Funding from Major Japanese Investors for Expansion

Smart Repair Secures Funding for Expansion

Smart Repair, based in Minato, Tokyo, specializes in the support and estimation services for renovation projects of large buildings, including condominiums and commercial properties. The company has raised substantial funds from notable investors including JAFCO, one of Japan’s largest venture capitalists, and JR East, among others. This funding marks a pivotal moment for Smart Repair as it aims to further expand its existing renovation solutions and develop new business areas, ultimately evolving into a comprehensive platform for building maintenance.

Funding Background

Smart Repair has a mission to contribute to an improved quality of life through fair transactions in building renovations. By offering a one-stop service called "Smart Repair," it aims to optimize the costs of renovation projects. With over 3,000 consultations handled and a recent 650% growth in the estimated circulation amount over the past 15 months, the company boasts a success rate exceeding 95% in reducing costs from original estimates.

Japan's condominium market faces a significant crisis characterized by aging buildings and insufficient reserve funds. Currently, there are approximately 1.48 million aging condominiums over 40 years old, projected to increase drastically to about 4.83 million in just 20 years. In contrast, renovation costs have risen by an average of 5.5% per year over the past four years. Additionally, a report by the Ministry of Land, Infrastructure, Transport and Tourism revealed that nearly one in three condominium buildings are facing a shortage of reserve funds.

This financial crisis is exacerbated by the opaque nature of the industry. Management associations lacking expertise often fall victim to collusion, exclusion of competitors, and conflicts of interest from some industry players, highlighting the pressing need for regulatory intervention by authorities such as the Fair Trade Commission. For management associations, establishing an environment where they can make informed decisions is crucial.

Since its inception, Smart Repair has tackled these challenges head-on, providing solutions that promote fair transactions in an industry that has long been marked by murky practices. With the increasing severity of issues surrounding condominium management, the demand for transparent mechanisms to protect assets has never been greater. The increase in funding exemplifies the company's commitment to addressing these market voices and providing robust solutions for asset protection.

Allocation of Funds

The recent funding will not only allow Smart Repair to expand its core renovation solutions but also to diversify its business endeavors leading to the establishment of a comprehensive building maintenance platform. The investment will primarily focus on:

1. Expanding the workforce and marketing efforts for its main renovation solutions business.
2. Launching the new "Downtime-Free Interior Renovation" service.
3. Initiating a new cost-reduction consulting venture.
4. Establishing a subsidiary, High-Speed Elevator, along with the launch of the "High-Speed Elevator Renovation" service.

With a mission to contribute to a better quality of life through fair transactions in building renovations, Smart Repair aims to address industry disparities and create a safe living environment for all. This funding will serve as a cornerstone in redefining true value in building maintenance while paving the way for a new standard in this sector.

Investor Comments

Mizuki Takahara, Partner at JAFCO, remarked that as condominiums in Japan reach their significant repair phases due to age, the challenges associated with decision-making concerning safety and property value have intensified, making the work that Smart Repair undertakes increasingly vital.

Shohei Hayashi, Partner at Global Brain, emphasized the enormous market for renovations in large buildings and applauded Smart Repair's commitment to addressing structural issues in the industry with a highly transparent business model.

Shun Ito, Managing Partner at Dual Bridge Capital, highlighted the public essence of maintenance work and praised Smart Repair's approach to combining expertise and technology to enable transparent decision-making for users in the renovation process.

Masakazu Sumiyoshi, Head of AI Innovations at DeNA, recognized the company's significant challenge in creating a transparent market for building repairs that enhances safety and trust among all parties involved.

Ryuu Bando, Managing Partner at Delight Ventures, expressed confidence in Smart Repair's vision to evolve into an industry leader that effectively addresses long-standing inefficiencies in the renovation market.

Conclusion

As the CEO Kenjiro Toyoda stated, this funding is a testament to Smart Repair's social demand and is aimed at expanding its core business while charting a course for new services. The company remains steadfast in its mission to foster fair transactions and a transparent market for building renovations to meet the needs of the next generation. Node: Smart Repair invites stakeholders and potential partners to explore further in this exciting new phase of building maintenance and management.