IT outsourcing firm Josys Inc. raised $93 million to expand in areas including the US, South Korea and Southeast Asia, the latest Japanese startup to hunt for growth outside an aging home economy.
(Bloomberg) — IT outsourcing firm Josys Inc. raised $93 million to expand in areas including the US, South Korea and Southeast Asia, the latest Japanese startup to hunt for growth outside an aging home economy.
The Tokyo-based company, which seeks to provide one-stop IT support for clients with remote and overseas employees, will use the Series B fundraising to help double headcount to 240 by year-end, Chief Executive Officer Yasukane Matsumoto said in an interview. Josys wants to provide outsourcing services in more than 100 countries by the end of 2025, he said.
“We created a global organization from Day One. Our operations are all in English, our co-founder is from India and we targeted overseas customers from the start,” Matsumoto said. “When your organization is geared for the Japanese market, it’s difficult to go abroad.”
Matsumoto, who founded Josys in 2021 after struggling to digitalize work at parent and online printing firm Raksul Inc. during the pandemic, declined to give a valuation. But he said annual revenue at Josys grew tenfold over the past year and is on course to hit the $10 million threshold.
Most Japanese startups focus on demand within the world’s third-largest economy. But caps on long-term growth from an aging population and a chronic shortage of highly-skilled engineers are prompting some to look abroad.
Josys, whose customers include Nomura Real Estate Development Co. and Japanese movie distributor Shochiku Co., helps companies secure IT networks for employees working from home and also helps them configure and repair mobile devices.
The funding round, led by Global Brain and Globis Capital Partners, will especially help accelerate growth in the US, where Josys plans to set up office this year, Matsumoto said.
“Japan is our home and is one of the most important markets for us,” he said. “But the US is huge and we will maximize investment there.”
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