Japan Spot Work Startup Timee Targets July Listing, Sources Say

Reuters

15:29 JST, June 11, 2024

TOKYO (Reuters) – Japan startup Timee, which operates a platform connecting workers seeking side gigs with labor-strapped businesses, is targeting a listing in July in Tokyo, two people familiar with the matter said.

The startup, founded in 2017, is aiming for a valuation of roughly $1 billion and the joint global coordinators are Daiwa Securities and Morgan Stanley, the people said.

The Tokyo Stock Exchange could approve the listing as soon as late next week, said one of the people, who all declined to be identified as the information is not public.

Timee did not respond to requests for comment. The Tokyo Stock Exchange and Daiwa said they did not comment on individual cases. Morgan Stanley declined to comment.

Timee’s app allows users to work shifts lasting as little as one hour at restaurants, convenience stores and hotels in return for quick payment. The firm said it has 7 million registered users.

Side gigs are becoming increasingly common in Japan as companies look for flexible sources of labor while workers look to top up income in their spare time.

Timee’s growth reflects a changing labor market driven by a deteriorating demographics, inflationary pressure and a shift to flexible working styles since the COVID-19 pandemic.

Japan is forecast to have a worker shortfall of 11 million people by 2040 as labor supply shrinks but demand remains robust, showed a projection from Recruit Works Institute.

Timee competes with flea market app operator Mercari which launched a side-gig service in March.

Major staffing agency Recruit and Dip, which operates the Baitoru part-time job platform, both plan new on-demand work services for later this year.

Japan’s spot work market is set to quintuple in size to 100 billion yen ($636 million) over the five years to the fiscal year ending March 2028, showed data disclosed by Dip.

Timee’s backers include trading firm Itochu and digital advertiser CyberAgent. Investors including venture capital firm Jafco plan to sell shares, one of the people said.

Jafco declined to comment.

Thirty-two companies including discount retailer Trial 141A.T and space junk remover Astroscale 186A.T have gone public in Japan so far this year, raising more than $800 million.

That compared with 29 listings over the same period a year earlier, LSEG data showed, raising more than $1.6 billion.

$1 = 157.1200 yen