We have remained consistent in achieving a compound annual revenue growth of 116% in the last four years up to July 2017. The credits go to the heavy amount of funding that we have received by leveraging the private capital market, due to which we were able to encourage a J curve and build an organization which will serve as an infrastructure of the legacy industries. And, on 31st May 2018, we became a public-listed company. Our vision says “Better systems, Better world”. Our strong belief is on the redesigning of the structure and the value chain of conventional industries with the help of internet.
Currently, Raksul has two focus industries which are printing and logistics, possessing two characteristics. First, the companies that are operating in these industries are made up of structure that can vertically join sales and manufacturing. Companies purchase the production equipment such as trucks and printing machines and employ a sales team to sell the capacity. Secondly, large corporations tend to make use of subcontractors. This develops a value chain which appears to be pyramid-shaped where large contractors are placed on the top and subcontractors in between. This results in high transaction cost for the intermediaries and profit margins for the subcontractors.
We strongly believe that this pyramid-structure we observe in big corporations needs to be restructured. With the help of the sharing platform, end users can be linked directly with the end suppliers. This, as a result, leads to lower transaction cost and hence, higher efficiency.
We want to take part in improving the productivity of the Japanese industries with the help of BtoB sharing platforms. Due to this, we will aim to enhance the value of our platform with the businesses principles stated below:
Maximizing the Value of Platform = Maximizing Total Gross Profit
We measure the value of the platform by the total value added produced. In other words, the value of the platform can be derived by accumulating the overall gross profit generated. As a platform company, we don’t focus on the company-wide gross margin as this rate can be different for different industries. Instead, we focus on maximizing the total gross profit amount.
Continuously Reinvest in Enhancing Platform Value
We strongly believe in enhancing the long-term value of the platform rather than seeking short-term profits. We will reinvest a certain amount of gross profit to grow the value of the platform. We will keep a check on the investments and analyze the ROI.
Investing in Human Capital as Drivers of Value Creation
People are the key for everything we do, ranging from the service design to the creation of a platform and enhancing user engagement. We appreciate human capital investment because we want to employ and retain people who are passionate and share the vision with us. We will make use of both the monetary benefits and employee stock incentives to attract a talented pool of individuals, create a culture that is strongly committed towards increasing corporate value in the long run and build an organization that is strong. We know in our heart that human capital is vital to realize our vision.
We believe that a raise in the total gross profit is crucial to increase the value of our business. Hence, we consider the growth investments to increase our long-run gross profit as one of the major requirements to create enterprise value. Moreover, as a result of the maximized gross profit, our mid-to-long run operating profit will also grow continuously.
We are strongly committed to running a company by staying focused on our vision and the beliefs as we continue to work towards the long-term goal of bringing changes to the Japanese industrial structures.
Founder & CEO
Founder & CEO