We primarily operate businesses in three segments: Marketplace (our flagship cross-category C2C marketplace Mercari, the B2C marketplace Mercari Shops, and the on-demand work service Mercari Hallo), Fintech (the mobile payment service Merpay), and US (the C2C marketplace Mercari in the US). Please see our Business Activities page for more information regarding our main services.

Through our businesses, Mercari works to contribute to solving environmental issues and create a “planet-positive”^* world in which people can continue to create new value by sharing limited resources across generations. We have identified five topics as our materiality, and take on initiatives in these areas as part of our continued efforts to achieve a more abundant society. Our five material topics are “Empowerment of Individuals and Society,” “Creating a World That Circulates All Forms of Value,” “Creating a New User Experience Through Technology,” “Building Long-Term Public Trust,” and “Unleashing the Potential in Diverse Talent Worldwide.” For more details, see our Sustainability page.

^*“Planet positive” is based on the concept of “planetary boundaries” (the earth’s limited resources). Mercari Group adopted this term to express our stance of being a company that has a positive impact on the environment through the growth of our business.

See our Corporate Governance pages (Our Corporate Governance Principles, Corporate Governance Structure, Effectiveness of the Board of Directors, Compliance and Risk Management).

See our IR Calendar.

For Marketplace and Fintech, adjusted figures exclude internal transactions between Marketplace and Fintech (outsourced payment processing fees). For US, adjusted operating profit is the amount after non-cash items (i.e., stock-based compensation and depreciation) are deducted. This adjustment is carried out to match the disclosure standards of other companies in the industry in the US market.

Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc.

This figure comprises the sales balance we temporarily hold for sellers after they sell an item on Mercari, the money we hold for users when they add funds to their Merpay account from a bank account, and the sales balance we temporarily hold for merchants after users choose to pay for purchases using Merpay at merchants.

This figure refers to the security deposit we deposit to institutions in accordance with laws and ordinances as a guarantee for the deposits received that we temporarily hold for users.

This figure primarily refers to money that we have deposited mainly with payment service providers so that users are able to withdraw their sales balance early, which is a part of the deposits received that we temporarily hold for users.

This figure includes expected payments for the unpaid balance of Merpay Smart Payments (lump-sum payment/fixed-amount payment) made by users. This is climbing primarily due to the increase in unpaid balance as a result of continuous product improvements creating more opportunities for users to utilize this service.

Our basic policy is to carry out financing by liquidating receivables for Merpay Smart Payments (lump-sum payment/fixed-amount payment). In FY2023.6, we began receiving external ratings for a portion of liquidated fixed-amount payment receivables and carrying out non-recourse financing^*, in which we procure funds based on the credibility of the credit receivable itself. We strive to appropriately control our balance sheet to maintain a sound financial foundation. We will continue to diversify our financing methods centered around non-recourse receivable liquidation to match the growth of our credit services going forward. ^*A method of financing in which the amount collected from the credit is the only source of repayment, and the repayment obligation is not borne by Mercari

This mainly refers to fees paid to contracted payment service providers.

We transitioned to using IFRS with the objective of enhancing international comparability.

We disclosed our consolidated financial forecast at the beginning of the fiscal year for the first time in FY2025.6. For FY2025.6, we will aim for consolidated revenue of 200.0–210.0B JPY and consolidated core operating profit of 22.0–25.0B JPY. We have also disclosed FY2025.6 targets for each of our business areas as below.
Marketplace: GMV growth rate of around +10% YoY, core operating margin of 37–42%
Fintech: Core operating profit of 3.0B JPY or higher US: Break even
For details, see our FY2024.6 Q4 financial results presentation material.

For FY2024.6–FY2027.6, we aim to achieve double-digit revenue CAGR and core operating profit CAGR of 25% or higher. Additionally, for Fintech we aim to lift core operating profit to over 10B JPY and establish Fintech as the second pillar of Mercari Group. For US, we aim to continue to break even. For details, see our FY2024.6 Q4 financial results presentation material.

Since Mercari was established, we have grown our businesses by prioritizing high top-line growth.
Beginning in FY2022.6 H2, we incorporated an approach to profitability into our management policy, consciously balancing top-line growth and profitability in our management to strengthen Mercari Group’s profitability.
In FY2025.6 and beyond, we will move one step further and aim essentially for strong top-line growth associated with increased profitability.
To achieve further growth in the future, it is crucial that we invest in business areas of high growth. We will aim for strong top-line growth while investing in high-growth businesses that will lead to the creation of Group synergy, and while essentially increasing profitability for the Group as a whole.

Unlike typical B2C businesses, C2C marketplaces are unique in that the sellers of items are ordinary consumers as well. It is essential to maintain an optimal balance of sellers and buyers in order to grow the business. If there are not enough buyers, sellers have difficulty selling their items; if there are not enough sellers, buyers have difficulty finding items to buy. We promote product improvements and marketing initiatives with this balance in mind.

In both Japan and the US, Q2 (October–December) and Q3 (January–March) are the peak season due to increased demand for winter clothing items, which tend to have high unit prices.

In both our C2C and B2C businesses, our primary source of sales is the selling fee (10% of the purchase price) we receive from sellers upon the sale of an item.

While we have no plans to change our fees at present, we will reconsider it as necessary taking into consideration similar services and the market environment.

According to an estimate by the Ministry of Economy, Trade and Industry (METI), the C2C EC market reached 2,481.7 billion JPY in 2023, an increase of 5.0% YoY. Additionally, the market size of the reuse industry, which includes the C2C EC market (marketplace apps, auction sites, etc.) and the B2C secondhand market (physical stores and EC platforms), was 3,050 billion JPY in 2023 and is predicted to reach 4,000 billion JPY in 2030, indicating that this is a promising market for future growth.<sup>*

*</sup> "FY2023 E-Commerce Market Survey Report", METI

We consider Mercari’s greatest strength to be that users can buy and sell anything, rather than leaning toward any one specific category. In FY2025.6, we will aim for further GMV growth particularly by strengthening categories with high price ranges, while continuing to grow all categories for a well-balanced marketplace.

Through our hearings, we have discovered that two of the major issues small businesses and producers face when opening online shops are the technical knowledge required to operate an online shop and a lack of successful sales after opening a shop. Mercari Shops provides a platform just like Mercari where anyone can easily open a shop and sell items, as well as the ability to leverage Mercari’s user base of approx. 23 million people. We aim to use these solutions to allow a wide variety of small businesses and producers to easily open up online shops and successfully sell their products. Additionally, the number of large-scale business operators who have opened shops on Mercari Shops, mainly to sell secondhand items and outlet items, is increasing due to the strengthening of API connections with major application service providers.

We believe that by including items listed on Mercari Shops alongside items listed by individual users, we can increase the variation of items available on Mercari, enhancing the shopping experience for buyers. We also believe that as the number of attractive shops that gravitate toward Mercari Shops increases, it will create opportunities for an even wider range of people to use Mercari, including those who have never used Mercari before. This increase in users will likely lead to more opportunities for individual sellers to sell their items as well.

Mercari Hallo is an on-demand work service that enables users to easily and quickly find work in shifts as short as one hour right from their smartphone. We aim to enable businesses to find workers utilizing Mercari’s user base of approximately 23 million people (including 16 million who have verified their identity) of all ages across the country, as well as to provide the user experience of being able to immediately use the wages earned from Mercari Hallo to purchase items on Mercari, to make payments at other merchants and businesses, and to pay off balances on Merpay.

The payment domain is an essential infrastructure for all transactions on the Mercari marketplace. Since Merpay was established, we have worked to enhance the UI and UX to provide a seamless transaction experience. With respect to enhancing profitability, we have been focusing on the credit domain since FY2021.6. As a result, we have made progress in establishing a profit base, achieving a full-year core operating profit for the second year in a row in FY2024.6 while strengthening our investments to acquire Mercard holders. We will continue to advance business growth, particularly in the credit domain.

We began our Fintech business in 2019 confident that providing Mercari and Merpay as a single service would enable users to more seamlessly circulate both items and money. We have created a cycle that allows users to sell items they no longer need on Mercari, use the money gained to buy new items through Merpay, and sell those items on Mercari when they are done using them. As we aim to promote a circular economy, we believe that Merpay, as our connection with primary distribution, fulfills its role as a bridge between primary distribution and secondary distribution. In addition, introducing Merpay Smart Payments (lump-sum payment/fixed-amount payment) to the market also contributes to creating new purchase opportunities, such as enabling users to buy items that would have remained out of their reach in the past.
In November 2022, we launched Mercard, as well as a regular point-back rewards system. Through this, we are working to create Group synergy, such as by promoting the three actions of paying, buying, and selling to maximize Mercari GMV and by encouraging the use of Mercard to contribute to reducing external payment processing fees.

Our main objective is to create Group synergy, such as by promoting the three actions of paying, buying, and selling through our regular point-back rewards system to maximize Marketplace GMV and by increasing the use of Mercard within Mercari to contribute to reducing external payment processing fees and enhance Group profitability. We also expect increased use of Mercard (both within and outside of Mercari) to contribute to the Group by enhancing the profitability of the credit business.

One of our primary focus areas is our deferred payment service. We consider this a promising market with continued growth potential. Studies estimate that the total payment volume of deferred payment services in the EC market will rise from 1.2 trillion JPY in 2022 to 2.4 trillion JPY in 2027.<sup>*

*</sup>Source: “Online Payment/Settlement Service Providers 2023”, Yano Research Institute Ltd. (published March 29, 2023) (Note: Numbers based on transaction volume of deferred payment service providers)

In 2021, we were the first business to obtain No.1 certification as a comprehensive credit purchase intermediary (AI credit). We carry out rigid risk management, leveraging our unique AI credit by calculating appropriate usage amounts that take into account credit based on each user’s behavior history, such as Mercari usage history, instead of traditional attribute information.

Our mission is to circulate all forms of value to unleash the potential in all people. In March 2023, we launched a service to buy and sell bitcoin within Mercari, with the belief that leveraging blockchain technology for value exchange will allow us to create a new user experience where anyone can easily exchange all forms of value, including services and digital content in addition to goods and money. In May 2024, we began offering Ethereum trading while continuing to work on enhancing the user experience.
The monthly amount of cryptoasset transactions in Japan is approximately 500 billion JPY.¹ However, only 1.7% of Japan's population owns cryptoassets², a low number compared to other countries, showing large room for growth. We aim to popularize this service mainly among casual users who have no prior experience buying bitcoin.

1. Japan Virtual and Crypto assets Exchange Association, “Monthly Cryptoasset Transaction Data” (January 2023)
2. TripleA: “Cryptocurrency Ownership Data” (as of April 3, 2023)

We previously received a selling fee from sellers upon the sale of an item, but as of March 27, 2024 (local time), we have changed to a business model in which we receive from buyers a service fee (the rate depending on category, brand, and other factors) and a 2.9% + $0.50 payment processing fee. Our actual take rate^* is the sum of these fees plus fees for additional services utilized by many of our users, such as our Instant Pay and Mercari Authenticate services.

^*Calculated based on net sales data that is calculated based on net results for shipping revenue and costs. Under US GAAP, net sales for Mercari US are calculated based on gross results for shipping revenue and costs. Under Japanese GAAP, net sales were calculated based on net results through FY2021.6, but due to the adoption of the new sales recognition standards, are calculated based on gross results as of FY2022.6.

The US market has multiple specialized services, such as services that only offer shipping options, services specific to certain categories, and services that require face-to-face transactions. However, we are establishing a unique position in the market as a cross-category C2C service that offers a variety of shipping options. We plan to continue strengthening this unique position to aim for mid- to long-term growth.

We consider this a promising market with continued growth potential, with a study carried out by Mercari US in partnership with a research organization (Mercari US, “The Reuse Report”) estimating that the US online reuse market is expected to grow from 74 billion USD in 2022 to approx. 180 billion USD by 2030.

WTYO: 4385.

100 shares.

Currently, we do not provide a shareholder benefit plan. Please see Shareholder Returns Policy for more details.

The Shareholders Meeting is held in September every year. The date and venue will be updated on the Shareholders Meeting page upon confirmation.

Sumitomo Mitsui Trust Bank, Limited.

Please contact the securities company at which you made your trading account. If you have a special account in which shares are recorded, the Securities Agency Department from Sumitomo Mitsui Trust Bank, Limited will be responsible for your stock procedures. For further details, please take a look at our Stock Procedures page.

For the time being, our policy is to prioritize strengthening our financial foundation through investment in growth opportunities and our internal reserves; we do not have plans to pay dividends at present.