MEDIROM MOTHER Labs Co., Ltd. completed a private placement of new shares to its President and CEO Yoshio Uekusa and Director Ryo Saito, valuing the company at ¥9 billion in a Series A round.
The internal investment follows a prior Series A funding of ¥260.3 million at a ¥9 billion pre‑money valuation led by NFES Technologies Inc. and joined by other Japanese public companies, confirming the subsidiary’s valuation and strengthening management’s equity stake.
The capital will be used to accelerate the development of upgraded MOTHER Bracelet models, launch new product‑market‑fit systems, and expand the health‑tech portfolio that includes the Lav app and wearable devices. The MOTHER Bracelet is a 24/7 recharge‑free smart tracker that self‑charges through body heat and is deployed in the REMONY remote monitoring system; the company has received orders for more than 25,000 units.
MEDIROM MOTHER Labs operates under the umbrella of MEDIROM Healthcare Technologies Inc., whose core revenue comes from relaxation salons. The health‑tech segment, which includes MOTHER Labs, is a smaller portion of the parent’s business, with a three‑year revenue growth rate of –1.8% and a high debt‑to‑equity ratio. The internal raise aims to align management incentives, increase operational agility, and support growth in the health‑tech segment.
The private placement to management raises governance considerations, as it could create potential conflicts of interest and affect investor confidence. Additionally, the ¥9 billion valuation of the subsidiary exceeds the parent company’s market capitalization, which may lead to skepticism among investors.
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