Japan, Osaka, 3 January 2023 – Micoworks Inc. (pronounced ‘Miko Works’), a developer and provider of the MicoCloud and Micomii marketing platforms, which optimize communication between companies and their customers, has announced the successful raising of JPY 3.5 billion (approximately USD 24.5 million) in a Series B funding round. Headquartered in Kita-ku, Osaka City, Micoworks is led by CEO Osamu Yamada.
The latest funding round was led by Vertex Growth, a growth-stage venture capital fund anchored by Vertex Holdings, a subsidiary of the global investment company Temasek. Participating investors in this round included JAFCO Group Co., Ltd., Mitsubishi UFJ Capital, SMBC Venture Capital, and Mizuho Capital. Existing investors, such as ALL STAR SAAS FUND and Eight Roads Ventures Japan, also contributed. To date, the company has raised approximately JPY 6.3 billion, with this round bringing in approximately JPY 2.8 billion.
Micoworks will utilize the newly acquired funds to enhance their product features and strengthen their organizational capabilities, with plans to expand into the Asian region. The company is currently setting up development teams in Philippines and Taiwan, recognizing Asia as a key market due to the rapid rise of Conversational Commerce in the region. Micoworks aims to broaden its reach to Taiwan, Thailand, and other Asian countries where the LINE business platform has a significant presence. Beyond the LINE ecosystem, the company intends to integrate MicoCloud with various popular communication channels in Asia.
Osamu Yamada, CEO of Micoworks Inc., expressed his gratitude for the overwhelming investor support. He stated, ‘We are thrilled to announce the successful closure of our Series B funding, securing approximately JPY 3.5 Billion. The faith our investors, including the leading venture capital firm Vertex Growth, have in our company’s potential and vision is immensely gratifying. Our goal is to become Asia’s No.1 Brand Empowerment Company by 2030, and to achieve this, we will expedite our product development and bolster our organizational structure for global expansion.’
Tam Hock Chuan, General Partner at Vertex Growth, shared his optimism, remarking, ‘We are delighted to lead Micoworks’ Series B funding round, alongside other leading investors in Japan. The highly scalable platform of Micoworks, which leveraged on the popular and widely used LINE messaging platform, facilitates personalized customer communications from acquisition to engagement. The exceptional leadership of founder and CEO Yamada, along with his top-tier management team, is the other key reason that attracted us to this investment. We are keen to help support Micoworks’ continued global growth.’
Mizuki Takahara, Partner at JAFCO Group Co., Ltd., recalled his initial meeting with Mr. Yamada about four years ago, stating, ‘When I first met Mr. Yamada, the company had less than 30 employees and had not launched MicoCloud. His ambitious vision to build Asia’s leading company was highly compelling. Their proven strength and exponential growth, with an organization of over 100 talented individuals, convinced me to invest. We will actively support Yamada-san and Micoworks vision as one of their investors.’
Hiro Maeda, Managing Partner at ALL STAR SAAS FUND, highlighted their ongoing commitment, saying, ‘Since our Series A investment in 2022, Micoworks has demonstrated remarkable business growth and product development. With the evolving team and management, and the support of new investors in this round, Micoworks is well-positioned to become the top company in Southeast Asia.’
Junichi Murata, Partner at Eight Roads Ventures Japan, commended Micoworks’ progress, stating, ‘Since our initial investment, Micoworks has impressively evolved beyond a basic LINE chat tool SaaS to become the fastest-growing enterprise suite, offering a data-driven and one to-one communication platform. We are proud to continue our support as existing investors, given our confidence in their management team and their robust growth trajectory. It’s not just the quantitative metrics that impress us; the qualitative aspects, such as their strong brand presence and low customer churn, truly exemplify their market impact and potential.’
Since February 2019, Micoworks has been providing the LINE-based marketing platform MicoCloud and the LINE Mini App service Micomii for restaurants. As of December 2023, over 1,000 brands, including consumer-facing companies like Tokio Marine & Nichido Fire Insurance, Pasona, and JR Tokai Tours, have utilized MicoCloud.
In recent years, the company has seen rapid expansion, spurred by post-COVID measures and the increased significance of online communication following the COVID-19 pandemic. The expansion of the ‘MicoCloud’ business and the enhancement of the development system have maintained a high monthly retention rate of over 99%, while significantly increasing the number of installations and end-users.
Additionally, the new funding will fuel Micoworks’ strategic growth initiatives. These efforts aim to further enrich the ‘MicoCloud’ marketing platform and amplify its value proposition. By focusing on integrating cutting-edge generative AI/ML technology, the company plans to bolster its development efforts. This includes making ‘MicoCloud’ multi-channel and implementing a high-security infrastructure. These enhancements are designed to expand the platform’s capabilities, empowering customers and advancing the company’s global aspirations, especially in the Asian market.
In conjunction with this new funding, Micoworks is actively seeking talented individuals for various roles, aligning with their goal to become Asia’s No.1 Brand Empowerment Company. For more information about the available positions, please refer to the appendix.
About Micoworks Inc.
Micoworks Inc. develops and provides the MicoCloud and Micomii marketing platforms, which are designed to optimize communication between companies and their customers. By facilitating optimal communication, these platforms maximize brand value and expand business possibilities.
For more information, please visit: https://www.micoworks.jp/
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