Written by Sam Nosi and Miho Oranaka
TOKYO (Reuters) – Japanese startup Timee, which operates a platform that connects workers looking for side gigs with labor-strapped companies, is targeting a July listing in Tokyo, two people familiar with the matter said.
The startup, founded in 2017, aims for a valuation of nearly $1 billion, and joint global coordinators are Daiwa Securities and Morgan Stanley, the people said.
One of the people, who declined to be identified because the information is not public, said the Tokyo Stock Exchange could approve the listing as soon as late next week.
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 allows users to work shifts lasting up to one hour in restaurants, stores and hotels in exchange for quick pay. The company said it has 7 million registered users.
Side jobs have become increasingly popular in Japan as companies look for flexible sources of labor and workers look to supplement their income in their spare time.
Timee's growth reflects a changing labor market driven by deteriorating demographics, inflationary pressure and the shift to flexible working methods since the COVID-19 pandemic.
Japan is expected to have a labor shortage of 11 million people by 2040 as labor supply shrinks but demand remains strong, according to forecasts by the RecruitWorks Institute.
Timee competes with flea market app operator Mercari, which launched its side gig service in March.
Major recruitment agency Recruit and Dip, which operates part-time jobs platform Baitoru, plans to introduce new on-demand work services later this year.
The size of Japan's spot labor market is set to quintuple to 100 billion yen ($636 million) over the five years to the fiscal year ending March 2028, data revealed by Dip showed.
Timee's backers include brand 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 retailer Trial and space junk removal company Astroscale, have gone public in Japan so far this year, raising more than $800 million.
That compares to 29 listings during the same period a year earlier, raising more than $1.6 billion, LSEG data showed.
($1 = 157.1200 yen)
