By Kane Wu and Anton Bridge
TOKYO (Reuters) – Investment firm Granite Asia has set up a joint venture with Japanese private equity firm Integral to invest in Japanese tech startups and support foreign tech firms’ expansion into the Japanese market, it said in a release on Monday.
Singapore-based Granite and Integral will each contribute $50 million to the venture, called Granite Integral, which will invest in late stage Japanese tech startups looking to expand internationally and foreign tech companies expanding into Japan.
The announcement comes amid a wave of global investor interest in Japan as its economy looks to be escaping decades of deflation and corporate governance changes take root.
“We see a strong opportunity in Japan’s growth-stage tech ecosystem, with longer private phases and increasing cross-border activity,” said Jixun Foo, senior managing partner at Granite Asia.
Key opportunities lie in artificial intelligence, robotics, the energy transition, health tech, and fintech, Foo said.
He added that the accelerating uptake of digital technologies in Japan was a growth area and provided an opportunity for global technology companies to enter the market, particularly in automation, supply chain optimisation, and enterprise solutions.
“This collaboration provides a strategic platform to navigate market complexities, enabling high-growth companies to successfully enter and thrive in Japan,” said Reijiro Yamamoto, founding partner of Integral.
The venture marks the first dedicated Japanese investment vehicle for Granite, which was formerly known as GGV Capital.
Last year Granite teamed up with the Indonesian sovereign wealth fund INA to invest in the technology sector in the country.
Granite Asia, formerly known as GGV Capital’s Asia franchise, was a major venture capital investor in Chinese startups.
In 2023, it split its Asia and U.S. businesses following a review by U.S. authorities over its funding of Chinese technology companies.
In the past it has invested in Tiktok operator ByteDance, e-commerce giant Alibaba and ride hailing app Didi.
(Reporting by Anton Bridge and Kane Wu; Editing by Kate Mayberry)
