rakumo

Basic Information

Stock Code
4060
Industry
Information and Communications Industry
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
December 2004
Listing Year
September 2020
Official Website
https://corporate.rakumo.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Celsys, Broadleaf, Interfac, PlusAlpha Consulting, Appier Group, Asia Q, Finatext Holdings, Smaruji, WingArc1st, Kaonavi, Sansan, Cybozu, Porters

Overview

Rakumo, founded in 2004, specializes in enterprise SaaS and leverages offshore development from its Vietnam base as a growing player in the information and communications industry.

Current Situation

Rakumo recorded net sales of approximately 1.3 billion yen and operating profit of approximately 300 million yen for the fiscal year ended December 2023, maintaining a solid financial foundation. Its flagship cloud-based groupware and expense reimbursement software are highly regarded, especially by mid-sized companies, with strengths in superior usability and flexible customization compared to competitors. It has built an efficient offshore development framework at its Vietnam base to sustain cost competitiveness. In recent years, demand has surged with the rise of telework, with focus on adding new features and strengthening integration services. On the sustainability front, it is committed to reducing environmental impact while gearing up for future growth. Medium- to long-term goals include expanding its domestic and international customer base, enhancing AI-utilizing services, and leading DX initiatives. With stable capital policies, it is highly rated for growth potential.

Trivia

Interesting Facts

  • Originally founded in Shibuya Ward under the name Nihon Gigei
  • Early establishment of Vietnam base to promote offshore development
  • Experienced surge in demand post-IPO due to telework adoption
  • President and Representative Director Daisuke Mitearashi also serves as founder and Chairman
  • Grew independently after being a subsidiary of NetYear Group
  • Company name 'rakumo' is a coined term from 'easy cloud' meaning business lightening
  • UI excellence of cloud services highly praised by customers
  • Vietnam's RAKUMO COMPANY LIMITED is key to development strengthening
  • Proprietary workflow products seeing rising market share
  • Acquired top-tier cybersecurity certifications
  • Over 20 years since founding, on growth trajectory as SME support leader
  • Flexible feature design accommodating diverse industries
  • Implemented superior employee retention measures in IT industry
  • Rapid success in feature development responding to COVID-19
  • Representative Joichi Ito known as prominent IT entrepreneur

Hidden Connections

  • Once had close capital ties with NetYear Group with active technology exchanges
  • Contributes to local IT industry growth through engineer training in Vietnam
  • Collaborates with multiple peers on industry standardization activities
  • Aligns with government subsidies for supporting customer telework transitions
  • Leverages Representative Director's entrepreneur network for new investments
  • Adopted in local governments' e-government promotion plans for business efficiency
  • Market differentiation via specialized cloud plans for education institutions
  • Strengthening technical collaborations with domestic and international IT ventures

Future Outlook

Growth Drivers

  • Expansion of efficiency needs from telework normalization
  • Tailwinds from strengthened DX push in mid-sized and SMEs
  • Cost advantages of offshore development based in Vietnam
  • Feature expansion from ongoing AI and cloud tech evolution
  • Government IT investment promotions and subsidy utilization
  • Flexible response to diversifying business needs
  • High user experience ratings driving customer growth
  • Rising cloud software demand in domestic and international markets
  • Corporate management emphasizing sustainability
  • Competitive pricing strategy and customer support

Strategic Goals

  • Achieve 20% domestic share in cloud services
  • Reach annual sales of 3 billion yen
  • Launch AI-integrated services
  • Position Vietnam base as development leader
  • Company-wide rollout of sustainability management
  • Strengthen support for diverse industries and company sizes
  • Service expansion responsive to market needs
  • Initiate active overseas market expansion
  • Standardize advanced security services
  • Maintain customer satisfaction above 95%

Business Segments

Enterprise Cloud Services

Overview
Provides various cloud services to support corporate efficiency, featuring flexible customization and support.
Competitiveness
Efficient offshore development leveraging Vietnam base
Customers
  • Mid-sized enterprises
  • IT companies
  • Government offices
  • Educational institutions
  • Medical institutions
  • Retail
  • Manufacturing
  • Logistics
  • Services
  • Startups
  • Local governments
  • Financial institutions
  • Non-profits
  • Venture companies
  • Consulting firms
Products
  • Groupware
  • Expense reimbursement system
  • Workflow
  • Calendar management
  • Recruitment management system
  • Document sharing platform
  • CRM integration
  • Attendance management integration
  • Chatbot integration
  • API integration services
  • Mobile-compatible services
  • Cloud storage services
  • SaaS services
  • IT consulting
  • Customer support

IT Outsourcing and Offshore Development

Overview
Conducts high-quality offshore development centered on Vietnam base to meet domestic customer needs.
Competitiveness
High-quality remote development and excellent cost efficiency
Customers
  • Domestic IT companies
  • IT departments of major corporations
  • Startups
  • System integrators
  • Software development companies
  • Financial IT departments
  • Telecom companies
  • Healthcare information systems companies
  • Educational systems companies
  • Logistics IT companies
  • E-commerce companies
  • Game development companies
Products
  • Software development contracting
  • System maintenance
  • Testing services
  • Operations support
  • AI implementation support
  • Cloud system construction
  • Mobile app development
  • Security measures
  • Custom software development
  • Database design
  • Business system development
  • Web system development
  • Multilingual services
  • RPA implementation support

SaaS-Related Consulting Services

Overview
Provides comprehensive consulting from SaaS implementation to operations to support customers' DX efforts.
Competitiveness
Extensive expertise in SaaS and hands-on support
Customers
  • Companies considering cloud adoption
  • SMEs
  • IT managers
  • Business reform personnel
  • Corporate planning departments
  • HR departments
  • Information systems departments
  • Sales departments
  • Educational institutions
  • Industry associations
Products
  • Business improvement consulting
  • System implementation support
  • User training
  • Business analysis
  • IT strategy planning
  • Custom development proposals
  • Operations support
  • Data utilization support
  • Security assessments
  • Risk analysis

Competitive Advantage

Strengths

  • Cloud product suite with high usability
  • Efficient offshore development at Vietnam base
  • Strong sales network targeting mid-sized companies
  • Flexible customization capabilities
  • Comprehensive customer support system
  • Stable financial base and profit growth
  • Leadership of the President and Representative Director
  • Business diversification through consolidated subsidiaries
  • Active adoption of cutting-edge technologies
  • Effective marketing activities
  • Competitive pricing
  • Proven track record across diverse industries
  • Robust security measures
  • High employee technical proficiency
  • Swift responsiveness

Competitive Advantages

  • Cost competitiveness and high-quality development leveraging Vietnam base
  • Expertise in cloud business software with comprehensive features
  • Deep penetration into mid-sized and SME markets
  • Enhanced convenience through unique service integrations like workflow management
  • Maintaining and improving customer satisfaction via continuous updates
  • Broad customer touchpoints through diverse sales channels
  • Stable capital structure and long-term management perspective
  • Technology innovation driven by internal and external collaborations
  • Organizational structure enabling rapid response to industry trends
  • High repeat rate from ongoing customer support
  • Differentiated services through granular offerings
  • High technical prowess from IT professionals
  • Flexible and prompt customer response capabilities
  • Expansion in telework support services in growing market
  • Sustainable management approach

Threats

  • Intensifying price competition from rivals
  • Delayed adaptation to rapid IT technology changes
  • Increasing cybersecurity risks
  • Burden of responding to diversifying customer needs
  • Political and economic risks at overseas bases
  • Talent attrition and hiring difficulties
  • Fierce domestic competition and market saturation
  • Increased operational burden from stricter regulations
  • Rise of new entrants
  • IT investment cuts during economic downturns
  • Reputation damage from security incidents
  • Impact of exchange rate fluctuations

Innovations

2023: Major enhancement of telework-compatible features

Overview
Added online approval processes and remote management functions optimized for telework environments.
Impact
Achieved customer base expansion and improved utilization rates

2022: Development of AI-linked email auto-sorting function

Overview
Realized email sorting automation using AI technology to contribute to business efficiency.
Impact
Contributed to reduced work hours and improved customer satisfaction

2021: Strengthening of Vietnam local subsidiary and talent development

Overview
Focused on expanding development base and engineer training to achieve quality improvements.
Impact
Increased project wins and shortened delivery times

2024: Introduction of security enhancement program

Overview
Introduced latest security technologies with focus on customer data protection.
Impact
Improved customer trust and reduced information leakage risks

2023: UI refresh for smart device compatibility

Overview
Revamped UI for smartphone and tablet compatibility, significantly improving usability.
Impact
Increased users and improved customer satisfaction

2020: Listing on Tokyo Stock Exchange Mothers Market

Overview
Strengthened funding base and raised corporate profile.
Impact
Accelerated business expansion and investment promotion

Sustainability

  • CO2 reduction through paperless initiatives
  • Commute reduction via remote work environment setup
  • Implementation of environmental load reduction measures at Vietnam base
  • Introduction of work-life balance-focused systems for employees
  • Participation in environmental education activities with local communities
  • Installation of energy-efficient office equipment
  • Promotion of sustainable IT resource utilization
  • Strengthened information security management and transparency
  • Efforts to promote employment of people with disabilities
  • Advancement of employee health promotion programs
  • Promotion of IT asset recycling activities
  • Business efficiency through digitalization