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air-closet.com

Founded Year

2014

Stage

IPO | IPO

Total Raised

$17.74M

Date of IPO

7/29/2022

About airCloset

airCloset (TYO: 9557) specializes in women's clothing from boutique Japanese fashion brands. The company ships three garments a month to subscribers, generally a combination of tops, bottoms, and dresses that can be worn together. AirCloset caters to young professionals and working mothers who have little free time to shop or discover new fashion labels. It was founded in 2014 and is based in Tokyo, Japan.

airCloset Headquarters Location

KD Minami Aoyama Building 3-1-31 Minami Aoyama, Minato-ku

Tokyo, 107-0062,

Japan

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Latest airCloset News

Private equity in Japan: a perfect storm

Jul 18, 2022

Leverage Operational efficiencies can result from restructuring. Divestment of underperforming assets, unlocking cost savings, bolt-on acquisitions, realignment of management incentives, are among other expertise that PE firms can bring to a company once they take control. Multiple expansion means positioning a company to justify higher EV/S and EV/EBITDA multiples (enterprise value/sales, enterprise value/EBITDA, respectively). Higher multiples can be attained via both internal actions such as enhanced strategic focus, improved corporate governance, and external factors such as investing in a sector which is growing or coming back into favor. Leverage means using a significant portion of debt to acquire the target company in the PE buyout. A typical leveraged buyout of a company for say $100 million might entail $30 million of equity from the PE fund and $70 million of debt from lenders. As you can imagine, combining two or all three above factors can exponentially enhance the financial return profile of the investment. Let’s say that the aforementioned $100 million company is valued at a multiple of 5x EBITDA, (EBITDA = 100m / 5 => 20m). The transaction is financed with 30m from the PE fund and 70m in outside debt. If the PE firm through operational efficiencies is able to increase EBITDA from 20m to 30m,  and in parallel is able to justify that the company thanks to its improved strategic focus and sectorial growth justifies an EV/EBITDA multiple of 7 rather than 5, the enterprise value of the company becomes $210 million. If the PE fund can find a buyer for the company at this price, it will generate a return on its invested capital of 4.67x ((210m – 70m debt)/30m). When viewing Japan through the lens of the above three factors for private equity value creation, the market here looks pretty attractive. Without naming names, it’s no secret that many incumbent corporations carry underperforming business lines on their books, and hence offer some opportunities ripe for restructuring, which in turn could unlock operational efficiencies. Additionally, Japan’s new ESG compliance requirements are forcing some companies to restructure and in certain cases even carve out business units. Regarding the principle of multiple expansion, EV/EBITDA multiples are moving in quite the opposite direction worldwide, as rising rates depress asset prices. Yet I would submit that such forces of multiple compression run deeper in the U.S. and Europe right now than what we are witnessing in Japan. However, thanks to its low interest rate environment, debt financing in Japan remains a relative bargain compared to the rest of the world. The opportunity to structure buyout transactions with inexpensive leverage is where Japan really shines on these vectors for private equity value creation. Moreover, the perception in Japan of the business of private equity, even of foreign funds, has been gradually improving. In the eyes of foreign PE funds, the Japanese market represents a reliable beacon of security and rule of law. Upon admittedly superficial analysis, it stands to reason that Japan should represent an appealing market for global PE funds in the current environment. We’re already witnessing some evidence of movement. At the start of the latest annual shareholding meeting season, a record 77 companies faced proposals from stock owners, many of them foreign funds. In March, Sweden’s EQT acquired Bering Private Equity Asia, with stated expansion plans for Japan. The potential imminent $20 billion buyout of Toshiba would serve as a bellwether. Whether these data points portend a broader trend remains to be seen, but if they do, this could result in increased competition for Japan’s domestic PE firms. (Unlike venture deals, in which VC firms often invest collaboratively as syndicates, private equity is more of a solo sport). An informal survey suggests to me that they are not alarmed. Perhaps I’m straying too far out of my lane here, but because I enjoy these hypothetical thought experiments, here’s my unsolicited (and probably unwelcome) advice to Japan’s domestic PE firms: build relationships upstream, i.e. with venture capital funds in Japan. The market here still remains quite opaque to foreigners at the venture stage, so you have an inherent competitive advantage by being on the ground. Granted, not all venture companies grow into private equity targets, but high-growth firms in some sectors often do, such as in enterprise SaaS, or alternatively can serve as complementary targets for PE build-up strategies. Building such relationships today will lay the groundwork for future dealflow before the competitive bidding process even begins. Related news SHARE: We reported earlier this year that Osaka-headquartered Warrantee, the Japanese startup offering free insurance services in the US and Singapore, has publicly filed with the US Securities and Exchange Commission (SEC) for its initial public offering (IPO) on NASDAQ. We recently learned the application has been approved by SEC. According to the regulator’s database EDGAR, the company has received SEC’s Notice of Effectiveness dated June 30. The company’s stock will be traded under its ticker code WRNT while it’s uncertain when the trading begins. Based on past cases, the trading will start within half to one month after the approval. We confirmed that Bloomberg has already set up a page showing Warrantee’s quotes. Meanwhile, Warrantee has posted a document titled Public Notice of Board of Directors’ Resolution on Issuance of Shares for Subscription on their website, which details the subscription and payment for the underlying shares and the shares subject of the Over-Allotment Option. Founded back in October of 2013 by CEO Yusuke Shono, Warrantee started its business with helping consumers turn product warranties into digital followed by foraying into the on-demand insurance market in 2017 in collaboration with insurance companies. Subsequently the company started offering free or low-cost on-demand… Read More SHARE: This guest post is authored by Tomohiko Hayashi. He is Pricncipal Director at Accenture Song / Accenture Ventures. He leads business development and innovation from a customer experience perspective. He has won and judged many awards at industry events including SXSW and Cannes Lions. You all know about a16z media, right? Then, have you heard of Lenny’s Newsletter? In my opinion, it is a newsletter and global Slack community that gathers the best startup information available today. More than 150,000 people, mainly startup PMs, managers, engineers, designers, etc., are registered. Lenny Rachitsky, former product manager of Airbnb, who operates these programs. The off-line meetups of this community are being held in various countries around the world by community participants. In June 2022 alone, there are 24 locations worldwide. I’d like to make it happen in Tokyo too! So I raised my hand to be the host. The first meeting will be held at Accenture Innovation Hub in Azabujuban on Tuesday, July 12, from 7PM. Would be great if we can get the Tokyo global crowd together! The content of the event is to be a place for international startups and globally minded startups to meet and exchange ideas. Please apply… Read More SHARE: Tokyo-based Gitai, the Japanese telexistance robotics startup for the space industry, announced last week that it has opened an office in Los Angeles for R&D, manufacturing, and business development. The company will begin recruiting project managers as well as various types of engineers in earnest. They had been conducting all business activities in Tokyo until  now. As collaboration with US agencies and private companies like Nanoracks and NASA has increased, including the successful onboard demonstration of their robot to the International Space Station last year, the company has decided to facilitate US operations. Prior to launching Gitai in 2016 (under its previous name of MacroSpace), the company’s founder Sho Nakanose previously worked for IBM Japan followed by founding an IT services company in India and sold it to an Indian company. Some of our readers may recall that Yuto Nakanishi, a humanoid scientist/engineer and former CEO of Schaft (acquied by Google X), joined Gitai as COO (now CRO, Chief Robot Officer). Gitai secured $4.1 million US in a Series A round in July of 2019 followed by 1.8 billion yen (about $17 million US in the exchange rate at the time) in a Series B round in March of 2021. Read More SHARE: See the original story in Japanese. Tokyo-based fashion item rental startup AirCloset announced on Friday that its IPO application to list on the Tokyo Stock Exchange had been approved. The company will be listed on the TSE Growth Market on July 29 with plans to offer 733,000 shares for public subscription and to sell 130,000 shares in over-allotment options for a total of 136,700 shares. The underwriting will be led by Mizuho Securities while AirCloset’s ticker code will be 9557. Its share price range will be released on July 11 with bookbuilding scheduled to start on July 12 and pricing on July 19. The final public offering price will be determined on July 20. Based on the company’s estimated issue price is 870 yen (about $6.5) per share, its market cap is approximately 6.4 billion yen (about $47.5 million). According to its consolidated statement as of June of 2021, the company posted revenue of 2.89 billion yen ($21.4 million) with an ordinary profit of 29.35 million yen ($217,000). Since its launch back in July of 2014, AirCloset has been offering a variety of fashion item rental services. Starting with a monthly subscription-based service delivering outfits coordinated by professional stylists, the… Read More SHARE: Tokyo-based LegalForce announced on Thursday that it has secured approximately 13.7 billion yen (over $101.6 million US) in a Series D round. The round is led by by SoftBank Vision Fund 2 with participation from Sequoia China, Goldman Sachs, WiL (World Innovaion Lab, Mizuho Capital, Mitsubishi UFJ Capital, and others. WiL, Mizuho Capital, Mitsubishi UFJ Capital followed their previous investment. The latest round brought the startup’s funding sumup to approximately 17.9 billion yen (over $132.8 million US). LegalForce has been offering two SaaS tools: LegalForce and LegalForce Cabinet. LegalForce uses natural language processing and other technologies to offer functions such as reviewing contracts according the type of agreement, detecting clauses that may be omitted or risky in addition to prevent omissions and oversights. Sine its launch back in April of 2019, the service has been serving more than 2,000 companies and law firms. Regarding LegalForce Cabinet, when you upload contracts/documents into it, its artificial intelligence will automatically read titles, names of contracting parties, and contract expiration date to create a ledger of them. As of June, the service is used by over 450 companies. Read More

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airCloset Rank

  • When was airCloset founded?

    airCloset was founded in 2014.

  • Where is airCloset's headquarters?

    airCloset's headquarters is located at KD Minami Aoyama Building, Tokyo.

  • What is airCloset's latest funding round?

    airCloset's latest funding round is IPO.

  • How much did airCloset raise?

    airCloset raised a total of $17.74M.

  • Who are the investors of airCloset?

    Investors of airCloset include Daiwa House Group, JAFCO, White Kyubin, Warehouse TERRADA, Credit Saison and 3 more.

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