Personal guarantee services Akari Hosho raises JPY 80m

Akari Hosho, which provides lifetime support and identity guarantee services for the elderly in compliance with national guidelines together with a group of trusted professionals such as lawyers, judicial scriveners, and care managers, has raised 80 million yen in funds through a third-party allotment of new shares, with underwriters including Incubate Fund, Kyoto Capital Partners, Saison Ventures, and Bengo4.com.

With this funding, the company aims to further expand its services and improve the quality, and to popularize identity guarantee services that can be used with peace of mind by elderly people all over Japan.

In Japan, the rapid aging of the population is leading to an increase in the number of elderly people living alone or without relatives. It is estimated that by 2050, the number of childless elderly people will exceed 10 million, of which more than 4 million will have no relatives. Under these circumstances, an increasing number of elderly people are unable to secure a "guarantor," which is required when hospitalizing or entering a nursing home, and are therefore unable to receive the services they need. As a result, in recent years, there has been a dramatic increase in the number of guarantor companies that handle guarantor duties on behalf of families (in other words, acting as a family proxy).

However, the guarantee service industry faces serious challenges. These include a lack of consumer protection due to the absence of supervisory authorities or legal regulations, a sharp increase in contract disputes (non-return of deposits, non-performance of services, etc.), unstable quality due to the proliferation of small businesses, and the existence of unscrupulous businesses. According to the National Consumer Affairs Center of Japan, the number of inquiries about guarantee services has tripled in the past five years, and many financial disputes have been reported, such as problems with refunds upon cancellation and non-performance of services.

Akari Hosho works with legal experts, medical and nursing care professionals to address these issues and provide safe and reliable services. Led by lawyers and judicial scriveners with extensive knowledge of nursing care and medical care, Akari Hosho provides comprehensive, high-quality support tailored to the needs of each elderly person, such as debt guarantees and post-death administrative procedures. In addition, together with medical and nursing care experts such as nurses and care managers, Akari Hosho provides comprehensive lifestyle support services to our customers, such as medical consent and emergency response.

Akari Hosho also complies with the "Guidelines for Lifelong Support Businesses for the Elderly, etc." formulated by the Ministry of Health, Labor and Welfare and others, and strives to operate its business appropriately, including by making the service content and fees transparent and having lawyers and other experts explain important matters at the time of signing contracts.

Through this funding, Akari Hosho aims to further expand its business and improve the quality of its services. Going forward, the company will accelerate its expansion into major cities across the country, thereby providing peace of mind to even more elderly people. It will also strengthen investments in system development and human resource training, aiming to further improve the quality of its services. In addition, the company will contribute to the development of the industry as a whole by deepening collaboration with industry groups and local governments, and working on creating appropriate rules and awareness-raising activities.

By providing safe and reliable identity guarantee services, Akari Hosho aims to create a society in which all elderly people can spend their retirement years in peace of mind.

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