Smaregi’s market capitalization grew fivefold to over ¥65 billion in the 7.5 years since its 2019 listing. The turning point in its growth was the acquisition of a loss-making company’s cashless payments system business.
Smaregi, a startup from Osaka, has continued to grow rapidly since listing. In the 7.5 years since its listing, its market capitalization has increased substantially, drawing attention to the expansion of its scale. The article attributes the company’s growth to market valuation and the restructuring of its business.
The expansion of its cashless payments systems through the acquisition of a loss-making company is cited as a turning point in its growth. Through the acquisition, the company is said to have incorporated a new customer base and technologies, broadening the scope of its business. Through comments from people involved, including the founder, the article portrays the strategic choice behind the acquisition.
The factors behind its positioning as a listed startup based in Osaka are also said to include regional factors such as the characteristics of the local market and the funding environment. The article suggests that the use of M&A, including acquisitions, will be central to sustainable growth going forward.