GMO VenturePartners has made a new investment in 10pct., Inc. (Headquarters: Minato-ku, Tokyo; CEO: Yutoku Nakahori), which operates and manages hotels and ryokans using data and AI. This Series A round was conducted alongside Global Brain and Delight Ventures (listed in no particular order, titles omitted). The round totaled approximately ¥400 million.
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10pct. turns around and operates accommodation facilities across Japan, including Kyoto, Hakuba, and Minakami Onsen.
Alongside the operating know-how it has accumulated on the ground at these properties, the company has developed software that applies AI to demand forecasting, automated rate adjustment, direct-booking mix improvement, and management reporting. Combined with its proprietary booking engine, these capabilities have consistently improved the profitability of the properties it supports.
Beyond operating individual properties, 10pct. also runs an area branding business, working to raise the tourism value of entire regions.
As AI begins to take on part of the work on the ground and materially lift industry-wide productivity, 10pct. stands out as an AI operator that combines the following three characteristics:
(1) An asset-light business model that scales while limiting growth in fixed assets and headcount
(2) A performance-based revenue structure tied to revenue growth at the properties it supports
(3) Exposure to the lodging and tourism market, which continues to grow on the back of inbound demand
We also expect that leveraging the GMO Internet Group’s payment infrastructure will not only deliver a more seamless payment experience for guests, but could evolve into a mechanism that encourages travel and spending within the surrounding region.
10pct. embodies “Real Estate × AI/Fintech,” one of our current investment themes. We look forward to giving our full support to this rare team that brings together a deep love of hotels and tourism with technology. (Lead: Uno)