Japanese Startup Timee Planning IPO Valued at $1 Billion

Japanese startup Timee, which operates a platform connecting workers seeking side gigs with labor-strapped businesses, is targeting a listing on the Tokyo Stock Exchange in July, according to two people familiar with the matter. Founded in 2017, Timee aims for a valuation of approximately $1 billion, with Daiwa Securities and Morgan Stanley serving as the joint global coordinators for the listing. The Tokyo Stock Exchange could approve the listing as early as late next week, said one of the sources, who all requested anonymity as the information is not public.

Timee's app allows users to work shifts as short as one hour at restaurants, convenience stores, and hotels, with quick payment for their work. The startup boasts 7 million registered users. This growth is indicative of a changing labor market in Japan, driven by demographic challenges, inflationary pressures, and a shift to flexible working styles since the COVID-19 pandemic.

Japan is projected to face a labor shortfall of 11 million people by 2040, according to Recruit Works Institute, as the labor supply shrinks while demand remains strong. Side gigs are becoming increasingly popular in Japan as businesses seek flexible labor sources and workers look to supplement their incomes.

Timee competes with Mercari, a flea market app operator that launched a side-gig service in March. Additionally, major staffing agency Recruit and Dip, which operates the Baitoru part-time job platform, plans to introduce new on-demand work services later this year.

Timee, Daiwa, and the Tokyo Stock Exchange did not respond to requests for comment, while Morgan Stanley declined to comment.