Midas Capital Inc. (Headquarters: Minato-ku, Tokyo; CEO: Hideki Yoshimura; hereinafter referred to as “the Company”) is pleased to announce its investment, through the fund operated by the Company (hereinafter “Midas Fund”), in Compass Corp. (Headquarters: Chuo-ku, Tokyo; CEO: Fumito Sasaki; hereinafter “Compass”) as it formally begins its operations. Through its Pre-Series A funding round, with Midas Fund and other investors, Compass has raised 400 million yen. The company aims to realize its mission and vision of “leading Japan’s tourism and passing on its culture to the next generation.”

Background and Overview of the Investment

Compass was established in December 2022 under the leadership of Midas Capital and operates a variety of services in the tourism and inbound sectors. Guided by its mission and vision of “leading Japan’s tourism and passing on its culture to the next generation,” Compass has accomplished significant milestones within a year. These include acquiring a kimono rental business, merging with KNOT WORLD Co.,Ltd., which offers optional tours for inbound visitors and consulting services for local governments, and Airtripstay Co., Ltd., which supports individuals and corporations entering the accommodation industry.

As Japan’s tourism and inbound market recover, the number of guests using services operated by Compass has been rapidly increasing, currently reaching approximately 100,000 annually. Through the creation of attractive contents and improvements in guest satisfaction, Compass aims to reach 300,000 annual guests by 2024.

Furthermore, as labor shortages caused by Japan’s declining population remain a challenge, Compass also recognizes the need to make the tourism industry more sustainable by promoting the efficiency of tourism workers’ operations.

The funds raised in this round will be utilized to expand existing businesses and develop new businesses in order to accommodate the growing number of guests, and improve the working environment for workers in tourism industry.

Midas Capital, as the largest shareholder, will continue to support Compass’s business activities.

■Use of Funds

The primary uses of the funds raised in this round are as follows:

1. Expansion of the Kimono Rental Business Compass plans to increase the number of stores of its kimono rental brand “wargo,” which currently operates eight stores nationwide, to over ten stores by the end of 2024 to provide services to a larger number of guests.

2. Launch of New Businesses and M&A Compass aims to expand guest-focused content in the travel sector, enter adjacent fields within the accommodation management industry, and increase revenue opportunities through mergers and acquisitions.

3.Strengthening Recruitment Across the company As the number of guests grows, Compass plans not only to hire additional staff for each of its businesses, also to recruit personnel for product development, marketing, human resources, and corporate operations to support the efficiency of workers engaing in tourism industry operations.

■About Compass Inc.

Compass Inc. provides diverse services in the tourism and inbound sectors to realize its mission and vision of “leading Japan’s tourism and passing on its culture to the next generation.” These services include supporting variety of services in tourism and inbound sectors such as the accommodation industry, planning and operating optional tours, kimono rentals, tourism consulting, and operating guide communities and media platforms.

Japan is one of the world’s leading countries in terms of tourism resources, offering rich natural landscapes, a pleasant climate, a vibrant culture, and exceptional cuisine. Leveraging these outstanding assets, Compass aims to provide the best tourism experiences to people around the globe while also serving as a leader in the tourism and inbound sector. The company also seeks to preserve and pass on Japan’s cultural heritage, revitalize the Japanese economy, and promote international exchange through tourism.

In addition to the management team consists of three members from the pre-merger KNOT WORLD Co.,Ltd and Airtripstay Co., Ltd., the company has welcomed professional talent to oversee areas such as kimono rental business, marketing, product development, HR strategy, and corporate operations, including M&A.

For more details, please refer to Compass’s press release:

https://compasscorp.jp/news/174/

◆Overview of Compass Inc.
Company Name: Compass Inc.
Representative: Fumito Sasaki (CEO)
Established: December 2022
Business Activities: Tourism and inbound-related services
Website: https://compasscorp.jp/

◆Overview of Midas Capital Inc.
Company Name: Midas Capital Inc.
Representative: Hideki Yoshimura (CEO)
Established: September 2017
Email: marketing@midascapital.jp
Website: https://midascapital.jp/