Information on the Target

24karat, Inc. is a Tokyo-based company located in Shibuya that specializes in providing a loyalty marketing platform leveraging Web3 technology. Founded on February 12, 2016, by executives Maki Ogawa and Seth Luang, the company aims to enhance the engagement and convenience experienced by brands and users alike, creating a new paradigm in loyalty marketing. In response to rapidly changing consumer behaviors and preferences, 24karat offers a next-generation platform that goes beyond traditional discount-centric loyalty designs, addressing deeper user needs for affirmation and personal satisfaction.

Through its innovative approach, 24karat utilizes a unique API, web interfaces, and mobile applications, allowing brands to customize their services while ensuring quick implementation and operation. The platform focuses on delivering an enriching experience for users and fostering a strong bond between brands and their customers, capitalizing on community-driven interactions and engagement.

Industry Overview in Japan

The Japanese loyalty marketing industry has seen significant evolution due to shifts in consumer expectations and technological advancements. With an increasing emphasis on personalized experiences and community engagement, brands are now seeking ways to differentiate themselves, beyond merely offering discounts. The rise of Web3 technologies presents opportunities to create more immersive and rewarding customer experiences.

Moreover, the growing environmental consciousness among consumers has propelled companies to rethink their loyalty strategies. Businesses are increasingly required to incorporate sustainability and social values into their marketing practices. This trend indicates a shift from traditional loyalty programs to those that align with consumer values, creating deeper emotional connections and long-term loyalty.

In this context, the implementation of blockchain technology and decentralized platforms can revolutionize how businesses engage with customers. By tapping into the benefits of transparency and user ownership, companies can develop novel loyalty programs that not only reward consumer behavior but also foster community involvement.

Overall, the Japanese market is poised for growth as organizations embrace innovative technologies and align their operations with evolving consumer expectations. The integration of Web3 into loyalty marketing strategies is anticipated to yield promising results for both brands and customers alike, presenting a potential game-changer in the industry.

The Rationale Behind the Deal

Lotte Ventures Japan, headquartered in Shinjuku, Tokyo, has made a strategic investment in 24karat through a third-party allotment of shares. This move reflects Lotte’s commitment to supporting innovative businesses that leverage cutting-edge technology to enhance customer experiences. Investing in 24karat aligns with Lotte's overarching goal to capitalize on market shifts and consumer demands for personalized and sustainable loyalty programs.

By backing 24karat, Lotte Ventures is not only investing in a promising startup but also bolstering its own portfolio in the rapidly evolving digital landscape. The potential for generating value through 24karat’s unique offerings and market positioning is significant, making this deal a forward-looking investment.

Information About the Investor

Lotte Ventures Japan is part of the larger Lotte Group, a well-established conglomerate involved in diverse sectors, including food, retail, and entertainment. With a focus on nurturing innovative startups, Lotte Ventures seeks to invest in companies that have disruptive potential and can contribute to creating future value. As a strategic investor, Lotte plays an essential role in mentoring and supporting portfolio companies to ensure their growth and success in the market.

The venture capital arm of Lotte Group emphasizes collaboration with entrepreneurs who share its vision for sustainable and transformative business practices. Their commitment to fostering startup ecosystems reflects a strategic approach to addressing emerging consumer needs and technological trends.

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24karat presents a compelling investment opportunity via its novel loyalty marketing platform that leverages the power of Web3. The increasing consumer demand for innovative and engaging loyalty experiences positions 24karat favorably within the Japanese market. Given the ongoing evolution in consumer behavior and the rising importance of sustainability, 24karat's platform is well-aligned with market trends.

The leadership team, comprising Maki Ogawa and Seth Luang, brings significant expertise and passion to the project, enhancing the credibility and potential success of the venture. Their proven track record and commitment to realizing the platform’s vision are fundamental assets that inspire confidence among investors.

Moreover, Lotte's investment not only provides financial backing but also strategic insights and resources that could accelerate 24karat’s growth trajectory. The support from an established conglomerate strengthens the startup’s position against competitors and enhances its market access.

Overall, 24karat’s innovative approach, combined with Lotte Ventures’ partnership, make this a noteworthy investment opportunity that could yield substantial returns as the loyalty marketing industry continues to transform and adapt in response to consumer expectations.

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