Japanese smart lock developer Photosynth files for IPO

Photostynth CEO Kodai Kawase

Tokyo-based Photosynth, the Japanese startup developing and offering smart lock Akerun as well as cloud-based room-entry access control system, announced on Thursday that its application to list on the Tokyo Stock Exchange has been approved. The company will be listed on the TSE Mothers Market on November 5 with plans to offer 700,000 shares for public subscription and to sell 946,900 shares in over-allotment options for a total of 5,613,300 shares. The underwriting will be led by Daiwa Securities and Credit Suisse while Photosynth’s ticker code will be 4379.

Based on the estimated issue price of 1,500 yen (about $13.4), the company will be valued at 22.9 billion yen (about $204.2 million). Its share price range will be released on October 19 with bookbuilding scheduled to start on October 20 and pricing on October 26. According to the consolidated statement as of December 2020, they posted revenue of 1,175.9 million yen ($10.5 million) with an ordinary loss of 683.5 million yen ($6.1 million).

Founded back in September 2014 by Kodai Kawase, Photosynth aims to allow people to gain access to spaces without carrying physical keys. They have developed IoT-based connected smart locks and a cloud-based authentication platform, offering them to users based on a subscription basis.

Last year, the company introduced the Akerun Access Intelligence, an access authentication platform to realize a keyless society, as well as a new service called the Akerun visitor management system. In this scheme, users can associate their unique identity used in real life, such as NFC transit card, smartphone, employee ID and entrance pass with their digital entity such as e-mail address and phone number, and then register all them in to the cloud. This allows users to gain access to various spaces such as their office, building and home with just a single ID.

The company won the grand prize at the JR East Startup Program, a startup accelerator program by Japan’s largest railway company, with a system offering access control for the entry to office buildings using JR’s Suica NFC transit card. They established a joint venture with Japanese leading lock and security company Miwa Lock in January.

Led by CEO Kawase (18.35%), the company’s major shareholders include Globis Capital Partners (9.81%), Norinchukin Bank (7.45%), Jafco (5.47%), Fidelity Funds (4.34%), Globis Fund (4.19%), Daiwa Corporate Investment (4.18%), Gaiax (3.82%), Tokyo Metropolitan Government (3.48%), Fidelity Japan Trust (3.10%), and Executive Vice President Hiroaki Uesaka (2.65%).

See also: