NEWLOCAL, a startup focused on community development, announced on the 20th that it has completed a ¥400 million Series A funding round. The lead investor was Samurai Incubate, with participation from JR West Innovations, JR East Startup, KDDI and Global Brain’s jointly established KDDI Regional Initiatives Fund No. 1, and Agribusiness Investment & Development. This brings the total funding raised since its inception, including loans, to ¥1 billion.
NEWLOCAL operates under the slogan “Creating Happy Scenarios from the Community,” and develops regional co-creation projects centered on real estate development. Its distinctive feature is the joint venture (JV) model, which involves establishing partnerships with key local figures to attract “people, ideas, and capital” from outside the region.
In Nozawa Onsen Village, Nagano Prefecture, NEWLOCAL established Nozawa Onsen Planning with Kenji Kono, a professional skier and head of the tourism association, to operate the music bar “GURUGURU” and utilize idle real estate for tourism and employment promotion. In Oga City, Akita Prefecture, they formed Oga Town Planning with the craft sake brand “Ine to Agave” to develop food culture hubs such as distilleries and hostels. Additionally, JVs have been established with local companies in Tango, Kyoto Prefecture, and Komatsu City, Ishikawa Prefecture. Currently, they are developing and operating 12 accommodation, dining, and cultural experience facilities across five regions, creating over 50 jobs, with about half being new residents.
With this funding, NEWLOCAL plans to deepen its business in existing areas and expand into new ones, aiming to reach 10 regions by 2027. By collaborating with new shareholders providing infrastructure in transportation, communication, food, and agriculture, they aim to develop lifestyle services for the era of multi-regional living and create opportunities for large corporations to engage with local communities.
The company intends to create multiple businesses with annual sales of ¥1 billion in each region, horizontally expanding the established model nationwide, and eventually applying it to the global market as a solution to the global issue of population decline.
via PR TIMES
