freee

Basic Information

Stock Code
4478
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
July 2012
Listing Year
December 2019
Official Website
https://corp.freee.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Timee, Proship, eBASE, Avant Group, Money Forward, Oracle Japan, Obic Business Consultants, First Accounting, Human Technologies, P.C.A., TKC, Miroku Information Service

Overview

freee is a leading domestic cloud accounting and HR/payroll software company founded in 2012, providing back-office SaaS services for corporations and sole proprietors, boasting the top market share in the industry.

Current Situation

As of 2024, freee has grown its sales to approximately 10 billion yen, maintaining the No. 1 market share in Japan for corporate cloud accounting and HR/payroll software. It listed on the Tokyo Stock Exchange Mothers market in December 2019, with total funding raised reaching about 16.1 billion yen. Its services are highly popular among small businesses, with a user base exceeding 1 million businesses. Technologically, it focuses on AI-driven business efficiency improvements, actively rolling out new features such as management signals and monthly audits. It is strengthening collaborations with MUFG Bank and LINE, expanding partnerships with financial institutions. Moving forward, it aims for further service diversification and business growth through generative AI adoption and app platform expansion. Competitors in the industry include Money Forward, with differentiation through technological innovation and financial strength. For sustainable growth, it is enhancing AI research, project management services, and collaborations with credit unions nationwide.

Trivia

Interesting Facts

  • Founder is Daisuke Sasaki, an engineer from Google.
  • Achieved cumulative funding of 16.1 billion yen shortly after founding.
  • No. 1 market share in domestic cloud accounting for corporations.
  • AI monthly audit service is an industry-first AI utilization case.
  • First in Japan to provide fully online company incorporation service.
  • TV CM image character is popular talent Ayonoka Kobayashi.
  • Realized API integrations with multiple domestic megabanks since 2016.
  • Experienced defeat in patent lawsuit with Money Forward in 2017.
  • Built network advancing collaborations with 253 credit unions nationwide.
  • Features end-to-end services from cloud accounting to HR/payroll.
  • Actively expanding business alliances with LINE and MUFG Bank.
  • Awarded multiple prizes including ASPIC Cloud Awards.
  • Achieved TSE Mothers listing just 7 years after founding.
  • Google alumni participate in management as CFO and HR executives.
  • Leading digital transformation for SMEs.

Hidden Connections

  • Collaborating with MUFG Bank to advance digitalization of financial services.
  • Invested by prominent VCs such as Recruit and DCM Ventures.
  • CM featuring Ayonoka Kobayashi continues airing mainly in Tokyo area, generating buzz.
  • Lawsuit with Money Forward became symbolic of industry tech competition.
  • Partnered with credit unions nationwide to form SME support base in regions.
  • Cloud service APIs enable integrations with diverse other industries.
  • Founder's Google experience contributes to innovative development and funding.
  • freee App Store aggregates diverse business apps as new value creation base.

Future Outlook

Growth Drivers

  • Aggressive adoption of generative AI and machine learning for business automation.
  • Ongoing expansion of cloud efficiency needs for SMEs.
  • Strengthened strategic collaborations with financial institutions and major capital.
  • Expansion of ecosystems like freee App Store.
  • New service rollouts for electronic payments and digital currencies.
  • Deepening regional markets through expanded credit union partnerships.
  • Flexible response to tax and labor system changes.
  • Stable revenue securing via subscription model.
  • Building footholds for global expansion and overseas market entry.
  • Accumulation and deployment of advanced technologies through continuous R&D investment.
  • Maintaining high-level customer support quality.
  • Building integrated cloud management platform.

Strategic Goals

  • Maintain and expand top industry share for corporations and sole proprietors.
  • Automate over 60% of all operations through AI and automation evolution.
  • Achieve over 100 billion yen in cloud service sales.
  • Complete strengthened collaborations with regional credit unions and financial institutions nationwide.
  • Increase freee App Store partner companies to over 500.
  • Continuously advance sustainable social contribution activities.
  • Build global expansion base for over 20% overseas sales ratio.
  • Secure cutting-edge cybersecurity standards.
  • Maintain over 90% customer satisfaction through UX improvements.
  • Advance service rollout adaptable to diverse industries and scales.

Business Segments

Business Efficiency for SMEs

Overview
Cloud services supporting efficiency in accounting and HR/payroll for SMEs and sole proprietors.
Competitiveness
Business simplification through extensive financial integrations and AI automation
Customers
  • SME Owners
  • Sole Proprietors
  • Accounting Firms
  • Tax Accountant Corporations
  • Startup Companies
Products
  • Cloud Accounting Software
  • HR and Payroll Software
  • Tax Filing Support
  • Electronic Payment Service

Solutions for Financial Institutions

Overview
Services improving loan reviews and credit evaluations through API integrations with financial institutions.
Competitiveness
Pioneering API integration track record with financial institutions and data utilization expertise
Customers
  • Megabanks
  • Regional Banks
  • Credit Unions
  • Credit Card Companies
Products
  • Data Integration for Loan Reviews
  • API Platform
  • Credit Risk Analysis Support

Corporate HR and Payroll Management

Overview
One-stop cloud HR and payroll solution from labor management to payroll calculation.
Competitiveness
High compliance with legal changes through continuous updates
Customers
  • Mid-sized Companies
  • Large Corporations
  • HR Departments
  • Social Insurance Labor Consultant Offices
Products
  • Attendance Management System
  • Payroll Calculation Software
  • Electronic Year-End Adjustment Filing

Corporate Incorporation Support Service

Overview
Support service enabling online completion of incorporation documents and registration applications.
Competitiveness
Fully automated document creation and online application integration
Customers
  • Entrepreneurs
  • Venture Companies
  • Startup Support Organizations
Products
  • Company Incorporation freee
  • Business Startup freee

Project Management Service

Overview
Cloud tool supporting visualization and efficient management of man-hours and progress.
Competitiveness
Integrated operations with accounting and HR systems
Customers
  • IT Companies
  • System Development Companies
  • Manufacturing
  • Project Managers
Products
  • freee Man-hour Management
  • Project Progress Management

Education and Training Business

Overview
Supports adoption through online and offline operation explanations and business training.
Competitiveness
Extensive track record and industry-specific curricula
Customers
  • Corporate Training Staff
  • SaaS Implementing Companies
  • IT Education Institutions
Products
  • freee Academy
  • User Training

API Integration Platform

Overview
Platform enabling API integrations with financial institutions and external services to support business efficiency.
Competitiveness
Most extensive financial institution connections in Japan and security standards
Customers
  • Banks
  • Credit Sales
  • Other SaaS Companies
  • IT Vendors
Products
  • freee API
  • Financial Data Integration Service

Services for Tax Accountant Corporations

Overview
Dedicated tool suite promoting efficiency for tax accountant corporations and enhancing customer services.
Competitiveness
Specialized functions for corporations and strengthened cloud integrations
Customers
  • Tax Accountant Offices
  • Accounting Firm Corporations
  • Management Consultants
Products
  • Accounting Data Integration
  • Management Analysis Tools
  • Customer Management System

Electronic Payment Agency Service

Overview
Electronic payment agency service linked to cloud accounting, supporting revenue expansion opportunities.
Competitiveness
Automatic accounting integration and high payment reliability
Customers
  • Retail
  • Services
  • Corporate Users
Products
  • freee Payment
  • Cashless Payments

Secure My Number Management

Overview
Cloud service realizing compliant secure My Number management and operations.
Competitiveness
Optimal balance of usability and security
Customers
  • Corporations
  • Government Agencies
  • Professional Offices
Products
  • My Number Management freee

Securities and Investment Integration Service

Overview
Strengthens integration of securities data and accounting information to optimize customer asset management.
Competitiveness
Real-time integration and advanced security
Customers
  • Investors
  • Securities Firms
  • Fund Managers
Products
  • Investment Information Integration API
  • Asset Management Service

Business Automation for SMEs

Overview
Cloud solutions using AI technology to automate back-office operations.
Competitiveness
Continuous improvements and user-friendly operability
Customers
  • SMEs
  • Sole Proprietors
Products
  • AI Accounting Automation
  • Labor Automation Tools

Competitive Advantage

Strengths

  • Top share in domestic cloud accounting
  • Funding track record of 16.1 billion yen
  • AI-driven business automation technology
  • Strong integrations with financial institutions
  • Wide range of services for SMEs
  • Intuitive user interface
  • Advanced security framework
  • Diverse app integration platform
  • Strong brand recognition
  • Reliability as a listed company
  • Advanced cloud technology adoption
  • Unique corporate incorporation support
  • Advancing collaborations with credit unions nationwide
  • Comprehensive customer support
  • Active new service development

Competitive Advantages

  • Holds industry-first megabank API integration record
  • Innovative product launches like AI monthly audits
  • Differentiation through integrated cloud accounting and HR/payroll
  • Strength in collaborations with diverse financial institutions and funding
  • Network effects from overwhelming user base
  • Specialized corporate incorporation and startup support
  • Versatile functionality for wide industries
  • Transparency and reliability unique to listed companies
  • Operates cutting-edge domestic AI research lab
  • Product lineup addressing diverse customer needs
  • Robust internal R&D driving technological innovation
  • External service expansion via comprehensive API integrations
  • Broadens customer base with flexible pricing
  • Ecosystem building involving financial industry
  • High evaluation and trust from extensive awards

Threats

  • Intense share competition with Money Forward etc.
  • Legal risks such as patent disputes
  • Burden of responding to frequent industry regulatory changes
  • Competitor technological innovations from AI advancements
  • Risks from financial institution system integrations
  • Intensifying SES and talent acquisition competition impacting development and maintenance costs
  • Information leakage risks from cyber attacks
  • Demand for rapid response to fast-changing market needs
  • Increasing investment burden for new technologies
  • Reduced IT investments by SMEs due to economic fluctuations

Innovations

2024: Enhanced Generative AI Automatic Bookkeeping Input Function

Overview
Significantly improves efficiency in automatic analysis and journal entry of receipts using generative AI.
Impact
Contributes to reduced workload and improved accuracy

2023: Expansion of freee App Store

Overview
Strengthens third-party app integrations to meet diverse customer needs.
Impact
Expands service ecosystem and improves customer convenience

2022: AI Monthly Audit Service Function Update

Overview
Expands audit accuracy and coverage for further business efficiency.
Impact
Reduces audit costs and improves reliability

2021: Expansion of API Integrations with Financial Institutions

Overview
Begins collaborations with multiple regional banks and credit unions.
Impact
Strengthens loan reviews and cash flow support

2020: Project Management freee (now freee Man-hour Management) Release

Overview
Launches service for visualizing and supporting man-hour efficiency.
Impact
Contributes to corporate productivity improvements

Sustainability

  • CO2 reduction through energy-efficient data center design
  • Reduced transportation load by promoting employee remote work
  • Thorough promotion of diversity and inclusion
  • Implementation of IT education support programs for local communities
  • Strengthened sustainable procurement and green IT promotion
  • Enhanced personal information protection and compliance framework
  • Paperless promotion aiming for reduced environmental impact
  • Regional economic support through collaborations with local credit unions
  • Continuous comprehensive CSR activities
  • In-house energy efficiency improvement campaigns