Digital Garage

Basic Information

Stock Code
4819
Industry
Information and Communications
Category Detail
Consumer & Business Finance
Prefecture
Tokyo
Establishment Year
August 1995
Listing Year
December 2000
Official Website
https://www.garage.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
JGC Holdings, Welnet, Billing System, GMO Payment Gateway, GMO Financial Gate, ROBOT PAYMENT, Transaction Media Networks, NetStars, Net Protections Holdings, Japan Securities Finance

Overview

Digital Garage is a leading company in the information and communications industry founded in 1995, developing payment platforms, marketing, and investment businesses, and supporting diverse internet sectors domestically and internationally through various affiliates.

Current Situation

Digital Garage recorded consolidated net profit of approximately 5.8 billion yen for the fiscal year ended March 2024. Headquartered in Tokyo, it operates across a wide range of areas including payment agency services, marketing, and investment incubation. It possesses one of Japan's largest payment platforms, providing diverse payment services and successfully building electronic payment infrastructure for commerce and local governments. The marketing business supports data-driven advertising promotions and is strengthening internet advertising and content-related businesses through group companies. In the investment and incubation segment, it nurtures promising startups domestically and internationally and operates 'DG Lab,' a research organization promoting open innovation. In recent years, it has promoted technological innovations such as blockchain technology utilization and AI-based fraud detection solution development, strengthening its financial foundation through capital alliances with Resona Holdings and others. Aiming to build a sustainable digital society, it is strategically promoting service expansion and the普及 of digital local currencies toward 2030.

Trivia

Interesting Facts

  • Established Japan's first personal homepage 'Tomigaya' in 1993.
  • Pioneering company that formed capital and business alliance for Japanese Twitter launch.
  • Headquarters in Shibuya Parco and DG Building, strong in both digital and physical realms.
  • Established 'First Penguin Award' to support original challenges.
  • Employs blockchain engineers advancing cutting-edge technologies domestically and internationally.
  • DG Lab leads development of new services fusing blockchain and AI.
  • Conducts content value research in collaboration with many leading media.
  • Established incubation center 'DG717' in San Francisco.
  • Launched next-generation program 'GenLab' for generative AI entrepreneurs in 2023.
  • Commercialized Japan's first off-app in-app purchase service, leading the industry.
  • Forms broad network through capital and business alliances with diverse major companies.
  • Integrates and manages complex payment agency operations with high reliability.
  • Selected for Tokyo Metropolitan smart service implementation project.
  • Also expanding fintech business for food service industry through subsidiaries.
  • President Lin Ikuya known as an unconventional founder who started with mahjong friends.

Hidden Connections

  • Strong influence in advertising industry through equity-method accounting of CyberBuzz shares.
  • Accelerating entry into smart EC market via joint venture with Kakaku.com.
  • Strengthening financial collaborations through capital and business alliance with Resona Holdings.
  • Capital and business alliance with Blockstream in blockchain technology field.
  • Powerful collaboration with Dentsu Group deploying data science business.
  • Contributes to regional revitalization by providing NFC tag technology to Shibuya Ward digital local currency project.
  • Long-term collaborations with diverse next-generation startups through Open Network Lab.
  • DG Lab's technology development intersects with domestic and international science, technology, and art fields.

Future Outlook

Growth Drivers

  • Revenue growth from expansion of Japan's largest payment network.
  • Innovative service development leveraging AI and blockchain technologies.
  • Strengthening discovery and nurturing of new businesses through startup investments.
  • Broad business area expansion through diverse capital and business alliances.
  • Increasing demand for fintech and marketing amid rising DX needs.
  • Accelerated international expansion through strengthened global market collaborations.
  • New service creation through introduction of latest technologies like generative AI.
  • 普及 of regionally focused digital services such as local currencies.

Strategic Goals

  • Maintain top domestic payment market share and strengthen multi-payment integration.
  • Establish leadership in cutting-edge technologies in blockchain and AI fields.
  • Double current size of startup investment fund.
  • Complete integrated platform in digital marketing domain.
  • Contribute to forming digital economic spheres across multiple regions and countries.

Business Segments

Payment Agency and Remittance Services

Overview
Supports diverse payment needs with one of Japan's largest payment platforms.
Competitiveness
Integrates diverse payments with high security processing
Customers
  • Retail Stores
  • Food Service Providers
  • Financial Institutions
  • Local Governments
  • Mail Order Businesses
  • IT Companies
  • Public Institutions
  • Service Industries
Products
  • Real-world Payment Services
  • Remittance Services
  • QR Code Payments
  • Facial Recognition Payments
  • Buy Now Pay Later
  • AI Fraud Detection Solutions

Marketing and Promotion

Overview
Provides effective data-driven promotional measures.
Competitiveness
Powerful digital media collaboration network
Customers
  • Advertisers
  • Media Companies
  • EC Operators
  • Restaurants
  • Manufacturers
  • Agencies
  • Event Planners
Products
  • Digital Ad Delivery
  • SNS Marketing Utilization
  • Content Value Research
  • Promotion Support
  • Influencer Marketing

Startup Investment and Incubation

Overview
Focuses on discovering, nurturing next-generation companies domestically and internationally, and creating new businesses.
Competitiveness
Multifaceted resource collaboration and latest technology utilization
Customers
  • Startup Companies
  • Venture Capital Firms
  • University Research Institutions
  • Investors
  • Government Agencies
  • Industry Partners
Products
  • Investment Fund Management
  • Incubation Programs
  • Accelerator Programs
  • Technology Development Support
  • Global Expansion Support

Fintech Strategy Business

Overview
Innovative fintech business leveraging cutting-edge technology.
Competitiveness
Industry-leading technology and regulatory compliance capabilities
Customers
  • Financial Institutions
  • Payment Providers
  • IT Vendors
  • Corporate Entities
  • Crypto Asset Companies
Products
  • Crypto Asset Custody Services
  • Blockchain Technology Development
  • Fintech Solutions
  • Digital Currency Services

Information Services

Overview
Provides solutions for information distribution and enhancing advertising value.
Competitiveness
Optimization of advertising and content collaboration
Customers
  • Publishers
  • Media Operators
  • Advertising Agencies
  • Educational Institutions
  • Local Governments
Products
  • Digital Content Delivery
  • Ad Delivery Platforms
  • Marketing Data Analysis
  • DX Promotion Support

Real Estate DX Services

Overview
Advances DX in the real estate industry to improve productivity and customer satisfaction.
Competitiveness
Industry-specific digital solutions
Customers
  • Real Estate Agents
  • Construction Companies
  • Property Management Companies
  • Home Builders
  • Sales Agencies
Products
  • Unified Contract Management System
  • Property Management Platform
  • Digital Sales Support
  • Customer Management System

Education and Content Business

Overview
Promotes digitalization and global expansion in education and cultural industries.
Competitiveness
Diverse industry collaborations and latest technology utilization
Customers
  • Educational Institutions
  • Book Publishers
  • Content Production Companies
  • Creators
  • Portfolio Startups
Products
  • Educational Programs
  • Digital Content Production
  • Media Deployment Support
  • Technical Training

Global Incubation

Overview
Global expansion through startup support connecting Asia, Europe, and North America.
Competitiveness
Multinational collaborations and diverse market access
Customers
  • Overseas Startups
  • Local Investors
  • Multinational Corporations
  • Engineer Communities
Products
  • Overseas Startup Support
  • Global Investment Funds
  • Business Development Support
  • International Network Building

Competitive Advantage

Strengths

  • Possesses one of Japan's largest payment platforms
  • Data-driven marketing technology
  • Strong collaboration with diverse group companies
  • Advanced R&D organization 'DG Lab' strong in cutting-edge technologies
  • Abundant track record in startup investment and incubation
  • Strong provision of diverse payment and remittance services
  • Stable financial base through solid capital alliances
  • Broad domestic and international network deployment
  • Flexible solutions tailored to customer needs
  • System extensibility via API integrations etc.
  • Adaptability to political and regulatory environments
  • Management strategy sensitive to market trends
  • High-level blockchain technology possession
  • Business incubation from a global perspective
  • Strong brand recognition and reliability

Competitive Advantages

  • Possesses Japan's largest-scale payment processing capacity with high reliability
  • Realizes broad business deployment by fusing marketing and investment strengths
  • Capable of integrated provision of diverse payment methods tailored to customer needs
  • Enhances security with advanced AI fraud detection
  • Stable supply base through capital and business alliances with major financial institutions
  • Leads in incorporating future technologies through startup incubation
  • Technological innovation via open innovation-type research organization operation
  • Builds global incubation network
  • High new business creation capability through multi-industry collaborations
  • One-stop capability from planning to implementation
  • Advertising marketing specialized in customer assets and data utilization
  • Flexibility to swiftly respond to laws, regulations, and market trends
  • Diversified monetization models utilizing web services
  • Venture investment successes support growth foundation
  • Aggressive expansion into digital service areas beyond payments

Threats

  • Intensifying domestic and international payment market competition
  • Stricter regulatory enhancements and security requirements
  • Response burden from rapid changes in fintech technologies
  • Intensified price competition from new entrants
  • Political and economic risks in overseas markets
  • Challenges in maintaining service quality amid diversifying customer base
  • Increasing cyberattack risks
  • Competitive decline from lagging technological innovation
  • Overseas investment risks from exchange rate fluctuations
  • Investment recovery uncertainty from economic fluctuations
  • Data utilization restrictions from strengthened privacy regulations
  • Impacts from social changes such as COVID-19

Innovations

2024: Full-scale launch of off-app payment service 'AppPay'

Overview
Realizes Japan's first off-app payments, accommodating diverse digital billing needs.
Impact
Creates new markets in payment domain, significantly improves customer convenience

2024: Launch of AI-powered fraud detection solution 'Sift'

Overview
Developed a system using machine learning for real-time illicit transaction detection.
Impact
Strengthens payment security and improves customer trust

2023: Development of proprietary virtual currency issuance framework using DG Lab DVEP™

Overview
Technology enabling general virtual currency issuance on Bitcoin blockchain.
Impact
Builds foundation for expanding blockchain utilization business

2023: Agreement to establish joint venture with Kakaku.com for smart EC business

Overview
Advances development of innovative EC services fusing generative AI technology.
Impact
Secures competitiveness in next-generation EC market

2022: Provision of NFC tag-based new payment service to Shibuya Ward digital currency project

Overview
Contributes to promoting digital local currency adoption with device-free new method.
Impact
Supports regional economic revitalization and digitalization

2021: Capital and business alliance with European data platformer 1plusX

Overview
Jointly develops advanced advertising technology for post-cookie era.
Impact
Contributes to strengthening advertising business in Japan and Asia

2020: Expansion of CloudPay with diverse QR code support and multi-payment integration

Overview
Supports diverse payments including Alipay, Kakaopay, au PAY, etc.
Impact
Captures inbound demand and expands payment usage

Sustainability

  • Regional economic revitalization through digital local currency business
  • Building sustainable social infrastructure using cutting-edge technologies
  • Promoting ESG compliance among global portfolio companies
  • Enhancing transparent data management and privacy protection
  • Sustainable growth through long-term technology nurturing and startup support