Japanese HR software company SmartHR has reportedly postponed its planned initial public offering until at least 2027 after prospective investors raised concerns over the valuation sought for the business, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as highlighting that the software-as-a-service (SaaS) provider had been targeting a market capitalisation of around $1bn. However, uncertainty surrounding valuations for SaaS companies, amid the rapid emergence of artificial intelligence and its potential impact on the sector, is said to have prompted a delay to the listing timetable.
Sources said SmartHR has been working with Daiwa Securities, Goldman Sachs and Morgan Stanley on preparations for the proposed Tokyo flotation. They added that both the timing of the IPO and the company’s target valuation remain subject to change.
SmartHR has not publicly commented on the reported postponement.
The company is one of Japan’s best-known privately held technology businesses and remains among the country’s limited number of unicorns. It was valued at approximately JPY170bn during a 2021 funding round before raising a further $140m in 2024 from investors led by KKR and Teachers’ Venture Growth. General Atlantic also expanded its investment in the business last year by acquiring shares from early backer Coral Capital.
The reported delay comes against a more subdued backdrop for Japan’s new listings market. According to Bloomberg data, companies raised JPY146bn through IPOs during the first half of 2026, marking the weakest first-half fundraising total since 2022. Smaller flotations have also become less common in recent years as reforms introduced by the Tokyo Stock Exchange have encouraged many private companies to remain private for longer before pursuing a public listing.
