Karii Fund, Operated by Umusan Lab, Invests in Tech Vegitas for Agricultural Distribution DX

Karii Impact & Innovation Investment Limited Partnership (commonly known as 'Karii Fund'), a regional problem-solving impact investment fund operated by Umusan Lab Co., Ltd. (based in Okinawa), has completed an investment in Tech Vegitas Co., Ltd. (Nanjo City, Okinawa), which develops agricultural distribution DX businesses in Okinawa.

This investment aims to transform agriculture into an industry where people can take on new challenges by promoting direct transactions between farmers and end-users (business buyers such as restaurants, hotels, and retailers) through agricultural distribution DX. Under the mission of 'Restoring a visible economy to agriculture,' Tech Vegitas intends to build a reproducible regional agricultural growth model originating from Okinawa.

Karii Fund has high expectations for the realization of sustainable management and improved income for farmers in Okinawa, as well as the autonomous circulation of the regional economy, through the integrated model of agriculture, distribution, and consumption built by Tech Vegitas.

■ Background and Purpose of the Investment
Okinawa's agriculture faces many structural challenges, including an aging population, farmers leaving the industry, a high proportion of small-scale farms, and a low average income per farm household. On the demand side (restaurants, retailers, consumers), there is an increasing need for 'traceable agricultural products,' 'stable supply of Okinawa-grown products,' and 'products produced as planned and delivered in the necessary quantities at the right timing.' Creating a system that connects production and consumption systematically has become an urgent task.

This investment was decided based on a high evaluation of Tech Vegitas's construction of a comprehensive agricultural distribution DX that approaches both farmers and the distribution/consumption side. By promoting direct transactions, the company aims to stabilize farm management and increase income. There is significant potential for Tech Vegitas to build a reproducible regional growth model in Okinawa and expand that knowledge nationwide.

■ Social Issues and the Society Tech Vegitas Aims to Realize
Okinawa's agriculture is entangled in complex issues: aging and industry exit, a structure centered on small-scale farms, supply-demand mismatch in distribution, and lack of sales opportunities at fair prices. Consequently, the average income per farm remains low, creating a vicious cycle that reduces opportunities for those aspiring to enter agriculture.

Tech Vegitas identifies the root of these problems as the 'severed relationship between farmers and end-users' and 'asymmetry of supply and demand information.' Through the development and operation of the agricultural distribution DX platform 'agrinex suite,' the company is working to rebuild a system that connects everything from production to distribution and consumption.

Under the mission 'Restoring a visible economy to agriculture,' the company aims to create an environment where farmers can secure fair prices and stable partners. By increasing new farmers and the 'related population' (people involved with the region), they strive to build an autonomous regional economic circulation model from Okinawa centered on agriculture.

■ Setting Impact KPIs
Together with Tech Vegitas, Karii Fund has set the following KPIs to quantitatively measure and manage social impact, and will conduct regular monitoring.

[Output Indicators]
- Number of farmers registered in 'Agriculture Revolution'
- Number of successful matching cases
- Number of users of 'Haruma-i'

[Initial to Mid-term Outcome Indicators]
- Average number of trading partners per farmer
- Number of repeat transactions
- Income change of model farmers

In particular, 'Income change of model farmers' is positioned as a core KPI. By tracking this continuously across different attributes, the company will visualize how Tech Vegitas's business contributes to the management stability and income growth of farmers. These KPIs will be reviewed and updated as necessary based on business phases and progress.

■ Role of Karii Fund
As an impact investment fund rooted in Okinawa, Karii Fund invests in and supports companies that aim to balance economic returns with social impact creation. Following this investment, the fund will provide continuous support through Impact Measurement and Management (IMM) to help Tech Vegitas realize its vision.

Furthermore, by utilizing networks within and outside Okinawa Prefecture, Karii Fund will work to create an environment where Tech Vegitas's platform can function more effectively. Specifically, they will continuously monitor impact KPIs to support the company in both business growth and social impact.

■ Overview of Tech Vegitas Co., Ltd.
Name: Tech Vegitas Co., Ltd.
Established: November 1, 2022
Representative Director: Yuichi Arakaki
Location: 518 Minei, Ozato, Nanjo City, Okinawa Prefecture