Message from Group CEO

Since our founding in 2009, under the vision of “BETTER SYSTEMS, BETTER WORLD,” we have been driving the structural transformation of traditional industries by bringing the internet to sectors where digitalization has lagged.

Our platform began with a sharing model, connecting customers directly with the underutilized assets (resources) of businesses to deliver optimal value. It has since evolved into a B2B platform that provides the products and services essential to the business environment of many companies, expanding into adjacent areas through M&A and business diversification.

Quality Growth and the Strengths Driving It

From the fiscal year ended July 2022, we shifted to a growth mode accompanied by profit and cash flow, which we call “Quality Growth.” We have placed the dual objectives of “balancing gross profit growth with continuous profitability improvement” at the core of our management. Two years have passed since I assumed the role of CEO, and this Quality Growth has been steadily executed, with EBITDA expanding approximately 3.7-fold over the three years since FY2022.

By achieving both profitability improvement while maintaining high top-line growth, our operating cash flow has grown dramatically. This abundant cash becomes the capital source for further growth investments, such as marketing investments to accelerate organic growth and M&A to achieve non-continuous growth. This investment, in turn, generates new growth and profit. We have established this “virtuous cycle of growth” and will continue to turn this cycle to pursue sustainable corporate value enhancement.

This growth and our competitive advantages have been built on the following factors:

First, legacy and vast market opportunities. Our business domains are still centered on manual and relationship-based transactions, leaving significant potential for transformation through digitalization and software adoption.

Second, the strong customer base and brand recognition we have built in this market. Our customer base of over one million SMEs is an irreplaceable asset for our business development. We believe that by leveraging our high brand awareness, we can efficiently expand into new business areas.

And third, our unique organizational and technological foundation to execute these strategies. It is precisely because we have the organizational strength that combines the three functions of technology, marketing, and operations that we have continued to create unique value in areas that are difficult for traditional large corporations or pure software companies to enter.

M&A and Alliances to Accelerate Organic Growth

Our growth has been based on the organic growth supported by these strengths. To further accelerate this growth cycle, we are combining it with a “roll-up” M&A model. The purpose is to achieve non-continuous growth by integrating the services and manufacturing capabilities that join our group. Furthermore, our M&A does not end at the acquisition. We place the highest importance on sharing a common vision with the companies that join our group and growing together while fully utilizing our capabilities. This ability to execute M&A and PMI (Post-Merger Integration) is also a driving force of our growth.

Evolving into an End-to-End Technology Platform for Small Businesses

Building on these strengths, RAKSUL will evolve into an End-to-End Technology Platform for Small Businesses.
Based on technology, we will deepen our “Transactions” (handling goods and services) while also expanding into “Software/BPO” (integrating into business processes) and “Finance” (financial services). Our future direction is to build an ecosystem that links these three business domains under a single common ID to comprehensively solve the management challenges of SMEs. It is our future direction. We believe this will result in an increase in customer LTV (Customer Lifetime Value) and solidify our cumulative profit structure.

For Sustainable Corporate Value Enhancement

It is “people” who execute all these strategies and create value. We consider our employees to be our greatest asset. We will continue to focus on fostering an organizational culture where diverse talent can take on challenges, and on providing competitive compensation and investment in human resource development.

Furthermore, our vision inherently includes making society better, and we believe our business activities themselves contribute to achieving sustainability. Please see here for our Group’s sustainability initiatives.

We aim to work alongside all our stakeholders, our partners in enhancing corporate value, to transform the social structure together. We sincerely ask for your continued support.