Japanese HR software provider SmartHR Inc. has pushed its planned Tokyo IPO to next year at the earliest after prospective investors rejected the company's asking valuation, according to people familiar with the discussions. The KKR-backed startup had been targeting a listing in 2024 but faced resistance from institutional buyers who deemed the price expectations disconnected from current market multiples for SaaS peers.

The delay reflects a broader recalibration in Japan's technology IPO pipeline, where private-market valuations from 2021-2022 funding rounds have not translated to public-market appetite. SmartHR last raised capital at a $1.2 billion valuation in 2022, but comparable listed HR tech firms now trade at significantly lower revenue multiples. KKR, which led that round, had been preparing for an exit via the public markets.

For the Tokyo Stock Exchange, the postponement removes a potential flagship tech listing from this year's calendar. The exchange has courted growth companies with revised listing rules, yet the gap between seller expectations and buyer willingness persists. Investors remain selective, favoring profitable, cash-generating models over high-burn growth stories.

The episode signals that Japanese unicorns cannot rely on 2021 vintage marks. Until SmartHR demonstrates a clear path to operating leverage or adjusts its price, the IPO stays on ice — and KKR's capital remains locked in.