Adapted from TSE Startup Hub materials, GrowthStock Pulse interview, and Allen Chng’s “Unlocking the Japan Market” fireside chat

For years, the relationship between Southeast Asia and Japan was viewed from the sidelines—a dynamic of occasional curiosity rather than deep strategic commitment. Traditionally, this relationship was seen through a one-way lens: either Japanese companies expanding into Southeast Asia, or Southeast Asian companies targeting the Japanese market.

Today, we are moving from a period of curiosity to one of commitment. A new paradigm of mutual growth is taking shape, where Southeast Asian companies raise capital and develop markets in Japan, while Japanese companies tap into Southeast Asian growth to scale globally. The Tokyo Stock Exchange (TSE) and its Asia Startup Hub program sit at the center of this shift, creating a bidirectional bridge for capital, talent, and innovation.

Why Japan, Why Now?

The shift in Japan’s market dynamics is not just structural; it is generational. A new cohort of Japanese entrepreneurs and corporate leaders has emerged with a decidedly international outlook. Having studied or worked abroad, they understand how Southeast Asian markets operate. Critically, they recognize that Japan’s core advantages—its capital depth, institutional credibility, manufacturing and supply chain expertise, and trusted brands—are highly exportable [10].

They are not waiting for the world to come to them. They are actively looking outward, creating a natural meeting point with the rapidly growing startup ecosystem across Southeast Asia.

For Southeast Asian companies looking into Japan, three distinct factors are converging at once [8] [10]:

1. The Geographic Opportunity: Japan offers a massive, unified market with high GDP per capita. For a company diversified across multiple Asian markets, unlocking even a small portion of Japan can equate to significantly healthier economics. Carro, for example, has been operating in Japan since 2022 through a joint venture with SoftBank, using this diversification to strengthen its profitability narrative.
2. The Reliability Factor: Paired with the potential to unlock a high average revenue per user (ARPU) market is a culture of trust and reliability around paying vendors. “Japanese companies pay for software services and pay on time,” notes Yinglan Tan, Founding Partner of Insignia Ventures Partners [7]. For B2B companies, having long-term, blue-chip Japanese customers strengthens their IPO narrative.
3. The Capital Markets Shift: A bidirectional dynamic is at play. Japanese corporates have capital but need new growth engines; Southeast Asian startups have growth engines but need capital. When Japanese investors like MUFG, Mizuho, or JAFCO back Southeast Asian companies early, they are not just providing capital—they are building relationships that make it easier for these companies to unlock a TSE listing down the line.

The Evolution of Japan-SEA Opportunities

The Tokyo business environment is undergoing a profound transformation. Active, outbound engagement by Tokyo’s key institutions to convene international founders and investors in Singapore—such as the Japan-Southeast Asia Market Forum, which attracted over 500 attendees in 2025—would not have happened five years ago [5].

This evolution is driven by several key developments:

• Corporate Governance Reform: The TSE’s push on price-to-book ratios and capital efficiency is forcing Japanese companies to think differently about partnerships, including those with international firms [10].
• The TSE Asia Startup Hub: Launched in March 2024, this program provides a structured, credible pathway for Southeast Asian companies to engage with Japan’s capital markets. As of February 2026, 20 supported companies have been selected [4].
• Tokyo Metropolitan Government Initiatives: Programs designed to attract international founders, offer soft-landing support, and establish co-investment frameworks signal that Tokyo is serious about competing as a global startup hub [10].

The practical implementation of the Japanese Depositary Receipt (JDR) scheme has also expanded options, allowing foreign companies to list on the TSE without incorporating in Japan—though local incorporation remains recommended for higher investor awareness and liquidity [8].

What We Bring to the Table

We are actively leaning into this evolving landscape. With five portfolio companies selected for the TSE Asia Startup Hub and one successful TSE listing already achieved via Appier in 2021, the firm is building the infrastructure for cross-border deal flow [1] [7].

“The Japanese market is the most important market outside of Southeast Asia for our portfolio companies,” Tan emphasizes [8].

Our approach focuses on building long-term, tomodachi (friendship) relationships rather than purely transactional ones. This philosophy is evident across their recent investments targeting both Japanese companies and cross-border collaborations:

Investing in Japanese Innovation

• Bloomo: A licensed Japanese securities firm building a mobile-first wealth management experience for retail investors. Rated the number one US stock trading app among domestic online brokerages, Bloomo is capitalizing on Japan’s NISA reforms and a rising awareness of investment returns versus cash savings. This mirrors the democratization of retail investing we have backed in Southeast Asia through companies like Ajaib and Finhay [10].
• Nudge: A Japanese fintech company offering a credit card product at the intersection of fan culture (oshi-katsu) and financial services. By targeting youth and first-time cardholders with over 200 customizable designs, Nudge is building early financial relationships in Japan’s massive monetizable fan economy [10].

Fostering Cross-Border Collaboration

• Tonik: A digital bank in the Philippines where Mizuho Bank serves as a strategic investor, having acquired an approximate 10% stake in 2022 [2]. This partnership exemplifies where Japanese institutional depth meets Southeast Asian digital innovation. Concrete synergies include distributing Japanese insurance products through Tonik’s retail base and launching white-label asset-backed lending programs with Japanese OEMs. Tonik’s lending products operate at a risk-adjusted return on capital of over 25%—a figure largely unavailable in mature markets like Japan [10].
• Intellect: A digital mental health platform expanding into Japan’s enterprise market. Recognizing that Japan already has advanced mental health awareness (including established EAPs and stress checks), Intellect adapted its approach. Rather than introducing its standard 26-question questionnaire, the product team developed solutions tailored to Japan’s specific requirements, meeting the established baseline of care while adding new value [10].

Building Human Bridges

Beyond capital, we act as an “educator.” Insignia Ventures Academy has produced over 250 graduates, cultivating talent that understands both Southeast Asian market diversity and Japanese business customs. This has led to a landmark partnership with Japan’s Iwate Prefecture to establish an educational institution on a 40,000-square-meter land subsidy. Here, Academy graduates will serve as “bridge builders,” supporting Japanese companies’ expansion into Southeast Asia while helping Southeast Asian talent navigate Japanese corporate culture [8] [10].

The Next Chapter

As we look to the next three to five years, the Japan-Southeast Asia relationship will deepen into real revenue lines and genuine strategic dependencies. The next wave of collaboration must move beyond pure investment into commercial partnerships—distribution, co-development, and joint go-to-market strategies.

The companies that will define this chapter are those willing to invest in relationship infrastructure: local presence, language, and trust built over time. Businesses that treat Japan merely as a transaction will not get far. But those that treat it as a long-term commitment will find that Japan rewards that dedication in ways few other markets do.

References

1. Appier. “Appier completes IPO and listing on the Tokyo Stock Exchange in Japan”. 03/30/2021. https://www.appier.com/en/press-media/appier-completes-ipo-and-listing-on-the-tokyo-stock-exchange-in-japan
2. Mizuho. “Mizuho Bank Invests in Filipino Digital Bank Tonik”. 02/09/2022. https://www.mizuhogroup.com/global-news/2022-02-20220209release-eng
3. Appier. “Approval of Change of Listing Market Segment to the Tokyo Stock Exchange Prime Market”. 12/09/2022. https://www.appier.com/en/press-media/approval-of-change-of-listing-market-segment-to-the-tokyo-stock-exchange-prime-market
4. Japan Exchange Group. “Announcement of Companies to be Supported by TSE Asia Startup Hub”. 09/27/2024. https://www.jpx.co.jp/english/corporate/news/news-releases/1071/20240927-01.html
5. Japan Exchange Group. “Japan-Southeast Asia Market Forum 2025”. 11/26/2025. https://www.jpx.co.jp/english/corporate/news/news-releases/0060/20251126-01.html
6. Reuters. “India’s Groww valued at $8.6 billion as debut breaks recent IPO trend”. 11/12/2025. https://www.reuters.com/world/india/growws-parent-lists-12-premium-after-754-million-india-ipo-2025-11-12/
7. Japan Exchange Group. “Insignia Ventures Partners | TSE Asia Startup Hub Partner Interview”. 03/27/2026. https://www.jpx.co.jp/english/equities/listing-on-tse/startuphub/04-05.html
8. Growthstock Pulse. “How Insignia Ventures Connects Southeast Asia to Japan’s Capital Markets”. 03/27/2026. https://pulse.growthstock.app/insignia-ventures-partners-1/
9. Growthstock Pulse. “How Southeast Asian Startups Navigate Japanese Business Culture”. 03/27/2026. https://pulse.growthstock.app/insignia-ventures-partners-2/
10. Chng, Allen. “Unlocking the Japan Market | Panel 2: From Landing to Belonging”. Insignia Ventures Partners. 03/30/2026.