Chugin Capital Partners, an Okayama-based investment firm led by representative director Hiroyuki Okada, has expanded its support for Tokyo-based SoVa through two separate financial instruments. The firm underwrote a third-party allotment of SoVa shares through the Chugin Infinity Fund 2 and purchased convertible bonds with stock acquisition rights through Chugin Infinity Fund 3. This transaction marks the fourth round of funding for SoVa from Chugin Capital Partners following earlier investments in April 2023 and August 2024.
Investment Structure and Financial Terms
The latest support combines equity and debt-like financing to address needs that sit between traditional equity and lending. Chugin Capital Partners invested through its Infinity Fund 2 by participating in a third-party allotment of new shares and separately used Infinity Fund 3 to purchase convertible bonds with stock acquisition rights issued by SoVa. The specific investment amount was not disclosed, but the firm described the move as its first use of such hybrid instruments.
SoVa's Business and Growth Drivers
SoVa operates a new type of accounting office that combines technology with the expertise of tax accountants and labor and social security attorneys. The company offers a monthly subscription plan covering bookkeeping, payroll, and other back-office operations alongside management support services such as tax reduction, subsidies, cost savings, and cash flow proposals. Demand growth for back-office efficiency and management support has supported the company's expansion.
Strategic Use of Hybrid Financing
According to Chugin Capital Partners, the decision to use convertible bonds with stock acquisition rights was part of a broader effort to align funding methods with a portfolio company's capital strategy and growth stage. The firm believes this approach can reduce share dilution compared with a pure equity investment while broadening the startup's financing choices. It also positions Chugin to provide flexible support that bridges equity investment and traditional lending.
Leadership Perspectives
SoVa representative director Kentaro Yamamoto said the company appreciated the continued backing, noting that long-term support from an investor is meaningful for a startup facing uneven business conditions. He said SoVa wants to evolve beyond accounting efficiency to use accumulated financial data to support business management and decision-making. Yamamoto added that he hopes to work with Chugin Group to deliver new value to companies and entrepreneurs in Okayama and other regions.
Fund Overview and Regional Impact
Chugin Infinity Fund 3 is a 2 billion yen vehicle managed by Chugin Capital Partners and scheduled to run from June 2025 to December 2036, a period of about 12 years. Chugin Capital Partners director and investment division head Rei Ishimoto said the firm's role is to consider the most suitable capital structure and financing method for each investee. He added that providing growth capital between equity and debt is an initiative made possible by a regional bank's investment arm.
The additional commitment signals Chugin Capital Partners' intent to support startups with a wider range of financing tools while encouraging regional innovation and entrepreneurship. By combining a conventional equity investment with convertible bonds, the firm is testing a more flexible model for growth-stage funding. The move reflects a strategic effort to help portfolio companies like SoVa pursue long-term expansion while strengthening the regional economy.