Establishment of Raicho Capital, Inc.

Raicho Capital, Inc. to support India-Japan partnerships through Investment and Advisory

Background of the Establishment 

According to 2024 IMF global GDP rankings, Japan and India are ranked 4th and 5th respectively, indicating that both countries are on a similar scale in terms of economic size. However, the challenges they face are markedly different.

India is experiencing a rapid economic growth and has a young and growing population, while Japan is facing a declining birthrate and an aging society. In India, the market itself is steadily expanding, offering numerous opportunities for investment and growth. On the other hand, Japanese companies are struggling to identify growth markets domestically.

While Japanese companies are often noted for holding excessive cash reserves, India still lacks sufficient patient growth capital for future-oriented investments. Additionally, with the tailwinds of the government's "Make in India" initiative and geopolitical realignment of supply chains, India is aiming to bolster its manufacturing sector and there is strong demand among Indian companies for the technological expertise possessed by Japanese firms.

Raicho Capital was founded with the mission of bridging this economic gap between Japan and India through investment, contributing to the resolution of the unique challenges both countries face.

About Raicho Capital, Inc. - Investment and Advisory Services

Raicho Capital aims to support promising small companies in India through long-term investments and advisory. We will further support these Indian companies to create new value by facilitating strategic partnerships with Japanese companies.

There are currently few sources of so-called "patient growth capital" available for small Indian companies, which are neither startups nor large corporations.

For Japanese companies, building relationships with promising Indian businesses provides valuable opportunities to access the vast and fast-growing Indian market and to utilize India as a partner for strategic sourcing and outsourced manufacturing – similar to what Japanese companies have achieved in China.

Origin of the Company Name

The "Raicho" (Japanese Rock Ptarmigan) is an alpine bird that came to the Japanese Alpine region in the Ice Age and is designated as a Special Natural Monument.

The Raicho is able to thrive in the Japanese Alps because it operates in zones with limited competition and it adapts to the harsh alpine environment of extreme temperatures and strong winds by molting three times a year.

Our company name, "Raicho Capital," reflects our aspiration to operate in an underserved, low-competition area while adapting like the Raicho to tackle social challenges through the power of capital.

Management Team 

Paul Simon and Kohei Matsui both previously worked at SPARX Asset Management Co., Ltd., where they were based in Tokyo and conducted investment research across Asia, with a strong focus on India.

Having met with senior executives of over 1,500 Asian companies, they have found Indian firms to be particularly growth-oriented and open to collaboration with external partners, particularly those from Japan. At Raicho Capital, we believe India represents the next multi-decadal growth opportunity.