Tonchidot, a Japan-based provider of a mobile augmented reality service, has raised $12m in its series B round from a venture consortium including three strategic investors.
Local phone operator KDDI, advertising company Spire and Itochu Technology Ventures, the corporate venturing unit of industrial group Itochu invested in the B round, along with venture capital firms DCM and Jafco.
DCM and Itochu had previously invested $4m in Tonchidot last year, just after its launch.
Ken Inoue, Tonchidot’s chief financial officer, in an interview with news provider VentureWire said its partnership with KDDI would bring the company’s augmented reality games and applications to more basic phones without a smartphone operating system.
Inoue added that its partnership with Spire was also important. "In the medium term we see applications for advertising.
"We are tying up with internet travel agencies and real estate services to locate which apartments are available for rent."