Edeyans Secures ¥670 Million Funding to Revolutionize Hotel Room Cleaning with AI

Edeyans, a Japan-based company specializing in AI-powered hotel room cleaning operations, has successfully secured a total of ¥670 million in its Series B funding round. This financing includes investments from renowned firms such as Oriental Land Innovations and WM Partners, as well as loans from various financial institutions, including Mizuho Bank.

The primary purpose of this funding is to bolster the development of their AI SaaS platform, Jtas (J-Tas), expand their room cleaning operations, and establish a robust foundation for recruiting and training Room Meisters—the professionals responsible for hotel room cleaning.

Addressing Challenges in the Hotel Industry

The funding aims to tackle two significant structural challenges facing the hotel industry: the persistent labor shortage and the slow adoption of digital technologies.

Strengthening Jtas Development

Edeyans is set to enhance the development of Jtas, focusing on standardizing operational management in hotel room cleaning. The plan includes accelerating the AI integration of all back-end functions, such as supply management, equipment inspection, and maintenance. The goal is for Jtas to evolve into the standard OS for the hotel industry, eventually expanding into international markets.

Expanding Room Cleaning Operations

To address the issue of staffing shortages, Edeyans will enhance its workforce by recruiting and training Room Meisters. The establishment of a local base in Indonesia will facilitate focused recruitment and education to ensure that the company can adequately respond to industry demands.

Transformative Era for the Hotel Industry

The hotel industry is undergoing immense changes in the aftermath of the COVID-19 pandemic. In addition to the pre-existing labor shortage, the number of inbound tourists to Japan is expected to surpass 33 million by 2024, leading to an increased room occupancy rate of around 85% in Tokyo and Osaka.

With hotel service quality declining and staff overburdened due to these conditions, Edeyans aims to shift the industry's focus from marketing and investment in facilities to prioritizing operational quality. Their technology, which stems from real-world experiences, is set to address these systemic challenges and support the entire hotel management framework.

Achievements and Future Prospects

AI SaaS Business Achievements

Over the past year, Edeyans' MRR (Monthly Recurring Revenue) has quadrupled, maintaining a 0% churn rate and being adopted by approximately 39.5% of major hotel chains in Japan. The company aims for Jtas to dominate the housekeeping sector, expanding AI functionalities to include maintenance and equipment inspections.

Room Cleaning Operations Achievements

The Room Meister recruitment campaign has successfully added 100 employees, boosting gross profit by 200% year-over-year and achieving a service utilization rate of 100%. Edeyans plans to scale its recruitment up to 1,000 employees by 2030 while strategically investing in training and operations in Indonesia.

CEO Hiroyuki Katayama's Vision

Hiroyuki Katayama, CEO of Edeyans, emphasizes the urgent need for transformation in the hotel industry amid ongoing labor shortages. He stated that over the past year and a half, the rapid adoption of Jtas in major hotels has made a significant impact, and Edeyans is now entering a new stage of evolution beyond just room cleaning services, aiming to innovate hotel operations comprehensively.

Statements from Partners

Oriental Land Innovations

President Makihata praised Edeyans for their commitment to create impressive guest experiences and noted the increasing challenges in hotel cleaning work amid growing inbound tourism.

WM Partners

The executives expressed confidence in Edeyans' dual business model combining AI SaaS and room cleaning operations, acknowledging their substantial growth and potential for market penetration.

Mizuho Bank

Mizuho Bank highlighted Edeyans' innovative approach to efficiency and problem-solving in the industry, reiterating their commitment to support the company's ongoing challenges and quest for new value creation.

Join the Edeyans Team

Edeyans is actively recruiting as it expands its operations and invites motivated individuals to be part of their transformative journey. Interested candidates can check their Company Deck and recruitment page for details.

Company Overview

- Company Name: Edeyans Co., Ltd.
- Founded: June 1, 2018
- CEO: Hiroyuki Katayama
- Headquarters: Tokyo, Japan
- Capital: ¥100 million
- Business: Development and provision of the hotel room cleaning DX platform "Jtas" and room cleaning operational services.
- URL: Edeyans Corporate Site