SmartHR, a Japanese human resources platform operator, is considering an initial public offering (IPO) at the Tokyo Stock Exchange later this year, according to people familiar with the matter.
The software-as-a-service (SaaS) provider is targeting a market capitalization of about ¥160 billion ($1 billion), said the people who declined to be identified as they were discussing private information. The company is working on a potential listing with banks including Daiwa Securities Group, Goldman Sachs Group and Morgan Stanley, according to the people.
Deliberations are ongoing and details such as timing and valuation could change, particularly given recent market volatility due to the Iran war and investors’ concerns over the disruptive effects of the artificial intelligence boom on the SaaS sector, the people said.
SmartHR did not immediately respond to a request for comment. Spokespeople for Daiwa, Goldman and Morgan Stanley declined to comment.
The company is among the country’s few unicorns, unlisted startups that have been valued at more than $1 billion. SmartHR’s investors include global private equity firms like KKR & Co. and General Atlantic, as well as the venture capital firm Sequoia Capital.
In a financing round in 2021, SmartHR was valued at ¥170 billion. KKR and Teachers’ Venture Growth jointly led a $140 million fundraising round in 2024, before General Atlantic acquired a stake from Coral Capital in 2025.
A successful share sale by SmartHR could offer a tailwind for the nation’s IPO market, which has had a series of poor trading debuts.
Among other unicorns, news aggregation app operator SmartNews is mulling an IPO that could value the firm lower than its previous fundraising round, it was reported. Taxi-hailing service provider Go, valued at $1 billion in 2023, filed in February for an IPO without setting a date.
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