CLAS Completes Fundraising of 3.53 Billion Yen for Expansion Phase

CLAS Completes Fundraising of 3.53 Billion Yen for Expansion

CLAS Inc., headquartered in Meguro, Tokyo, has concluded its latest round of fundraising, securing a total of 10 billion yen through a combination of long-term private loans and syndicated leases. With this, CLAS has raised an impressive 35.3 billion yen in total funding, strengthening its financial base as it moves into the next phase of its growth strategy.

Innovative Funding Strategies

Unlike many startups, CLAS has established advanced funding methods that include long-term unsecured loans and cooperative leases, demonstrating a financial stability that allows for such strategies. The latest fundraising round, which amounted to 10 billion yen, incorporates growth loans from SBI Shinsei Bank, unsecured loans from the Shoko Chukin Bank, and collaborative leases from four leasing companies. This approach signifies a major advancement for the company, allowing it to enhance its merchandise offerings and inventory.

The financial framework established by CLAS includes a hybrid mix of equity finance and long-term loan strategies, which minimizes the use of equity and reduces stock dilution. This is part of a financial strategy aimed at maximizing capital efficiency and providing a sustainable growth path.

Breakdown of Fundraising

The latest fundraising efforts can be divided as follows:

- Third-party allocation increase: 2.5 billion yen (7.1%)
- Sale and leaseback financing: 8.5 billion yen (24.1%)
- Revenue-based financing (RBF): 1.33 billion yen (3.8%)
- Loan financing: 15 billion yen (42.5%)
- Corporate bonds (including high-yield bonds): 8 billion yen (22.6%)

This means that CLAS has maintained a cumulative total of 35.33 billion yen from its recent fundraising rounds, solidifying its position in the market.

Financial Strength and Business Stability

Several factors have contributed to the effectiveness of CLAS's funding strategy:
1. Financial Stability: The company has proven profit trends and stable operating cash flow, improving its creditworthiness. This has allowed CLAS to secure long-term loans based heavily on its financial stability.
2. Flexibility in Fund Usage: Recent funding, classified under working capital, has offered extremely few usage restrictions, enabling the company to invest in flexible product categories in sync with business growth.
3. Unique Funding Methodology: CLAS has actively utilized diverse financing strategies, creating a repository of advanced financial knowledge and experience unique to startups, thus facilitating lower borrowing costs.

These developments ensure that CLAS can prepare for growth without being constrained by traditional equity financing time windows. As a result, the company possesses a high degree of freedom in crafting its growth strategy independently.