Updated
Updated · Bloomberg · Jul 8
SmartHR Delays $1 Billion Tokyo IPO to 2027 as AI Fears Hit SaaS Valuations
Updated
Updated · Bloomberg · Jul 8

SmartHR Delays $1 Billion Tokyo IPO to 2027 as AI Fears Hit SaaS Valuations

1 articles · Updated · Bloomberg · Jul 8

Summary

  • SmartHR has pushed its planned Tokyo listing to next year at the earliest after investors balked at the company’s targeted valuation, according to people familiar with the matter.
  • About $1 billion was the valuation SmartHR had been seeking, but investors also raised concerns that the AI boom could disrupt the SaaS sector and pressure multiples.
  • KKR-backed SmartHR is still working with Daiwa Securities, Goldman Sachs and Morgan Stanley on the deal, though both timing and valuation remain subject to change.
  • The delay underscores how AI-related uncertainty is complicating IPO plans for software companies even as they try to tap Japan’s equity market.

Insights

Is SmartHR's delayed IPO a warning that the AI boom could burst the entire SaaS valuation bubble?
As Japan's IPO market cools, will M&A become the only viable exit for its billion-dollar tech startups?
How can HR tech firms prove their strategic value when AI threatens to automate their core business?