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Business deals

Japanese food delivery app to raise $726m to battle Uber

Naver, SoftBank unit Z Holdings to inject capital into Demaecan

Japan's Demaecan said it will raise 80 billion yen ($726 million) as its battle with key rival Uber heats up. (Photo by Toshiki Sasazu) 

TOKYO -- Demaecan, a Japanese food delivery company backed by messaging app Line, on Monday said it will raise 80 billion yen ($726 million) in a move likely to intensify the cash-burning battle with its key rival Uber.

South Korea's Naver plans to invest 18 billion yen for an 8.3% stake in Demaecan, adding to a stake it already owns through a vehicle called Mirai Fund. Z Holdings, the parent company of Line and an affiliate of SoftBank Group, plans to invest 31.7 billion yen to maintain its 38.3% stake. Demaecan aims to raise the remaining amount from overseas investors.

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