Schengen

What Schengen does

SCHENGEN.INC is a privately held, Osaka-based Japanese company founded in February 2014 by Sawada Shuji that operates two business segments: (1) Japanese tea brand planning and sales, with sub-brands HIRAETH (premium organic tea, Cool Japan certified), bys Tea (fashion-forward positioning), and SWITCH (lifestyle), distributed through B2B wholesale to high-end restaurants and retailers in Japan, Paris, and New York (including the Maison Wa showroom near the Paris Opéra) and through a directly operated flagship store, bys Tea Stand, in Osaka Shinsaibashi opened in 2020; and (2) nursery school operations under the Izuru Hoikuen brand, positioned as Japan's first "wa-style" (Japanese) nursery with tatami flooring, traditional materials, and a Reggio Emilia approach, with three locations in Osaka (Uemachihonmachi and Awaza/Utsubo) and Kyoto.

The company's commercial model blends consumer goods (tea) with location-based services (childcare), generating revenue from B2B tea leaf wholesale, B2C tea retail at the Shinsaibashi flagship, and recurring nursery tuition fees. Its core differentiators are cultural authenticity, design-led brand identity (a "water-ink painting" store concept, horseshoe logo symbolizing Osaka-to-world dissemination), and curated sourcing via tea master (chashi) selection for the HIRAETH brand, supported by the Kansai Bureau of Economy, Trade and Industry's Cool Japan certification. The company has no disclosed core technology platform, proprietary software, or AI/ML capabilities; technical differentiation is operational (sourcing, store/nursery design) rather than digital.

Growth has been driven by organic vertical and geographic expansion rather than external funding. The original guesthouse business was spun off into a separate legal entity in 2018, freeing resources for the current two-segment focus. International expansion is concentrated in Paris and New York, with stated plans for flagship stores and Southeast Asian franchising. The company is small and founder-led: paid-in capital is JPY 10M, no external investors or subsidiaries are disclosed, and the website is the primary marketing and content channel.

Name

Schengen

Legal name

株式会社 シェンゲン (SCHENGEN.INC)

Website

https://schengen.jp

Company type

Private

Founded year

2014

Operating status

Operating

Short description

SCHENGEN.INC is a privately held Osaka-based company that plans and sells fashion-forward Japanese tea brands (HIRAETH, bys Tea, SWITCH) via wholesale to restaurants in Japan, Paris, and New York and via a Shinsaibashi flagship store, and operates Izuru Hoikuen, Japan's first tatami-based "wa-style" nursery school across three Osaka and Kyoto locations.

Ownership category

akta.pro rank

Product category

Premium Japanese Tea & Nursery Childcare Services

NAICS

Coffee and Tea Manufacturing (311920), Specialty Food Retailers (4452)

SIC

Retail-Eating & Drinking Places (5810), Beverages (2080)

akta.pro primary industry

Specialty Tea Shops (Loose-Leaf, Tea Bars) (THAFAKAD)

akta.pro secondary industries

Specialty Coffee & Tea Retail (Beans, Leaves, Accessories) (CRAHAGAI), Ethnic Beverages Wholesale (Specialty/Import) (AFAIAIAG), International & Ethnic Packaged Foods (CRADAAAG)

Keywords

• Japanese tea retail
• Premium tea wholesale
• Nursery school operations
• Cultural lifestyle branding
• Organic tea curation

Headquarters

HQ city

Osaka

HQ country

Japan

HQ region

Asia

Offices5 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel

Revenue model

1. Tea Leaf Wholesale (B2B): Tea leaf wholesale to restaurants, retailers, and international buyers in Japan, Paris, and New York. This is the primary and most established revenue stream, described as '茶葉の卸業' (tea leaf wholesale/trade).
2. bys Tea Retail Storefront (B2C): bys Tea Stand retail store in Osaka Shinsaibashi sells tea beverages and products directly to consumers. The store is designed as a flagship to build brand identity and serve as a gateway for customers to experience premium Japanese tea culture.
3. Nursery Tuition Fees: Nursery operations (Izuru Hoikuen) in Osaka and Kyoto generate recurring revenue through tuition fees from enrolled families. The company operates multiple facilities including Uemachihonmachi and Kyoto locations.

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

SCHENGEN.INC operates two business segments: (1) Japanese tea brand planning and sales, including the SWITCH, bys Tea, and HIRAETH brands sold via B2B wholesale to restaurants and retailers domestically and internationally, and through the bys Tea Stand flagship retail store in Osaka Shinsaibashi; and (2) directly operated Japanese-style (wa) nursery schools under the Izuru Hoikuen brand, featuring tatami flooring and traditional natural materials, with locations in Osaka and Kyoto.

Product overview

SCHENGEN.INC operates as a dual-business company focused on updating and reinterpreting traditional Japanese culture for modern consumption. The company operates two core business segments: (1) Japanese tea brands including SWITCH, bys Tea, and HIRAETH, which are sold through wholesale channels domestically and internationally (US, France), and through flagship retail stores like bys Tea Stand; and (2) Izuru Nursery School, Japan's first 'wa' (Japanese-style) nursery school with locations in Osaka and Kyoto, featuring traditional tatami flooring and Japanese cultural education. The tea brands are positioned as fashion-forward lifestyle products aimed at modernizing tea culture, while the nursery schools serve to cultivate Japanese identity from early childhood.

Differentiator

Problem solved

Functional benefit

Brands

• SWITCH: 日本茶ブランドの企画販売事業。お茶をファッションのように日常的に楽しむ文化創りをコンセプトとしている。
• いづる保育園
• Bys Tea（バイスティー）
• HIRAETH

Products and services

• SWITCH (スイッチ) Japanese tea brand positioning tea consumption as a fashionable lifestyle activity similar to how fashion is enjoyed. Aims to modernize traditional Japanese tea culture for contemporary consumers and has expanded to the US and France.
• bys Tea (バイスティー) Japanese tea brand with a horseshoe-shaped logo symbolizing dissemination from Osaka globally. Brand mission emphasizes 'Japanese tea as fashion' with innovative, non-traditional design approach. Sold via wholesale and flagship retail.
• HIRAETH Premium organic tea brand curated by a 'chashi' (tea master) using proprietary sourcing routes. Certified as Cool Japan product by the Kansai Bureau of Economy, Trade and Industry. Distributed at the Maison Wa showroom in Paris.
• bys Tea Stand (バイスティー スタンド) Japanese tea specialty retail flagship store in Osaka Minamisenba. Designed as a 'modern tea room' with black-centered interior using Sekigahara stone counters, offering a tea-focused spatial experience in a contemporary interpretation of traditional tea rooms.
• Izuru Hoikuen (いづる保育園) Japan's first 'wa' (Japanese-style) nursery school featuring tatami flooring, traditional natural materials such as Kyoto-designated intangible cultural heritage Kurodani washi paper, and a Reggio Emilia approach curriculum centered on Japanese cultural education to foster Japanese identity in children from an early age. Operated at multiple facilities in Osaka and Kyoto.

Quantifiable outcome

• HIRAETH tea brand received official Cool Japan certification from the Kansai Bureau of Economy, Trade and Industry, enabling retail placement in Paris at Maison Wa showroom near Opéra.
• +2 more outcomes

Named customers3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Three partnerships are on record, tiered core and minor.

• Kansai Bureau of Economy, Trade and Industry (近畿経済産業局)coreStrategic or Co-development Partner · 1 January 2020
• Maison Wa (Paris, France)coreChannel Partner/ Reseller/ Distributor · 1 January 2020
• Separate Legal Entity (Guesthouse Business)minorStrategic or Co-development Partner · 1 January 2014

Scale indicators4 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Nana's Green Tea: Modern matcha-focused cafe chain with locations across Japan and internationally, offering contemporary tea-based beverages and light meals. Directly comparable to SCHENGEN's bys Tea Stand in the modern tea cafe category, though at significantly larger scale.
• Marukyu Koyamaen: Premium Uji-based matcha and tea producer with retail operations and wholesale supply to restaurants and cafes. Comparable to SCHENGEN in the B2B tea leaf wholesale business and premium tea curation via traditional expertise.
• Nakamura Tokichi (Hojichi): Long-established Uji tea brand operating retail stores and tea cafes/restaurants combining premium tea with curated dining experience. Directly comparable to SCHENGEN's bys Tea Stand concept of integrating tea retail with a designed consumer experience.
• Lupicia: Specialty tea retail chain with multiple stores across Japan and international locations, offering curated loose-leaf teas and lifestyle positioning. Comparable to SCHENGEN's bys Tea and SWITCH brands in multi-store tea retail and lifestyle branding.
• Poppins Corporation: Major publicly listed Japanese nursery and childcare operator running hundreds of facilities nationwide. Comparable to SCHENGEN's Izuru Hoikuen business in operating directly managed nursery facilities under a differentiated brand and educational philosophy.
• Global Kids Company: Japanese nursery and educational childcare operator with multiple facilities. Comparable to SCHENGEN's Izuru Hoikuen as a direct operating peer in the Japanese childcare market.
• Ippodo Tea Co. Kyoto-based premium Japanese tea company (founded 1717) operating direct retail shops and wholesale distribution in Japan and internationally. Closely comparable to SCHENGEN's HIRAETH brand in premium positioning, tea-master curation model, and curated retail experience.
• Apron Corporation: Japanese nursery and childcare operator with a portfolio of directly managed facilities across Japan. Comparable to SCHENGEN's Izuru Hoikuen in operating directly managed nurseries with brand-differentiated educational offerings.

Broad incumbents

• Yamamotoyama: Historic Japanese tea and nori brand with broad retail distribution across supermarkets, convenience stores, and foodservice. Relevant as a larger incumbent competing in mainstream tea retail and wholesale channels.
• Ito En: Japan's largest dedicated tea manufacturer and brand owner (Oi Ocha brand). Operates broadly across packaged tea, beverages, and foodservice channels; relevant as a scaled incumbent competing for the same wholesale and retail customers.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Schengen