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Investing in fluctlight inc., a Company Expanding Services in the Generative AI Field

  • IR
  • Press Release
2024.06.21

The corporate mission of D-POPS GROUP Co., Ltd. (Shibuya, Tokyo; CEO: Kazuhiro Goto; referred to as “our group” from here on), is to multiply the number of growth companies (so-called “unicorn companies”) that will revolutionize society. In accordance with this, our group has made an investment in fluctlight inc. (San Francisco, CA; CEO: Yuji Nakagawa), a company expanding its services in the field of Generative AI.

Background
Japanese Prime Minister Kishida declared 2022 to be the "Year of Startup Creation" during his New Year’s press conference. Since 2017, our group has actively promoted the business strategies of mergers and acquisitions (M&A) and corporate venture capital (CVC), growing into a large group with 19 subsidiaries and 24 investment companies (at the time of publishing). While the government accelerates its efforts to foster startup and venture companies, our group has focused on creating the stage, environment, and platforms to serve as fertile ground for those startups to grow.

The AI system market in Japan is expected to grow at a compound annual growth rate (CAGR) of 20-25%, reaching 1.1 trillion yen by FY2027. The ad technology market is also forecasted to continue growing at a CAGR of 16.1% from 2024 to 2030. Meanwhile, the monetization of Generative AI services, which combines these two fields, remains challenging but also presents significant opportunities.

Our group is actively investing in the Generative AI sector to realize a diverse entrepreneurial ecosystem that encompasses various industries. With this investment, we aim to strengthen our business collaboration and support the further growth of fluctlight.

Comment from Kazuhiro Goto, President of D-POPS GROUP Co., Ltd.
I am very pleased to have the opportunity to invest in fluctlight. As Generative AI is expected to be utilized in various scenarios in the future, I decided to invest because I want to support President Nakagawa, who is taking on the challenge of creating a Generative AI-focused advertising network platform. When I first met Mr. Nakagawa, the founding CEO, I was very impressed by his aggressive and strong action-oriented approach, a quality that I believe is characteristic of a successful entrepreneur. I have great expectations for his future achievements.

Our group’s vision of “realizing a Venture Ecosystem” aims to contribute to society by supporting the development of startup and venture companies through creating the stage, environment, and platform that will serve as the fertile ground on which those startups can flourish. By strongly supporting fluctlight under Mr. Nakagawa’s leadership, we hope to grow together and work to enhance the company's value.

Comment from Yuji Nakagawa, President of fluctlight inc.
I have experienced several transformative periods in history: from the days when I used 10-yen coins to make calls on public telephones, to the time when the internet became widespread, and then to the era when we could use mobile phones and smartphones to access social media. Later, I learned about the contenders of these transformative periods who paved the way for those radical shifts in technology.

Now, as we seize the once-in-a-lifetime opportunity of Generative AI, I feel incredibly fortunate to receive support from Mr. Goto, the founding CEO, and Mr. Sugihara, who have built up brilliant track records by challenging themselves in the fields of telecommunications and the internet—fields that have now become commonplace.

Comment from Genta Sugihara, Advisor to D-POPS GROUP Co., Ltd.

I see a shared philosophy between fluctlight, which aims to create services using Generative AI to enable richer lives for people, and D-POPS GROUP, which is committed to building a "Venture Ecosystem" to provide pleasure and shine to people’s lives. I have known Yuji, fluctlight’s founder CEO, for 10 years since we first met at Google. During that time, I got to know him better and personally witnessed his insightfulness and his overwhelming vitality. I am truly grateful to have a working relationship with him once again, and I feel a great sense of expectation and deep connection.

Overview of fluctlight inc.

Development of services in the Generative AI field, including:
• Generative AI marketplace
• Generative AI-based advertising network

Company Name: fluctlight inc.
Company President: Yuji Nakagawa
Japan Address: Shiroyama Trust Tower 27F | 4-3-1 Toranomon, Minato Ward, Tokyo
Headquarters: 548 Market Street, San Francisco, CA 94104
Established: 28 April 2023
Website: https://fluctlight.ai/

 

☆The official press release for this investment in fluctlight inc. is linked here (Japanese only):
https://prtimes.jp/main/html/rd/p/000000003.000143719.html

 

☆Interview with Yuji Nakagawa, president of fluctlight inc., the company that is aiming to expand its business in the field of Generative AI (Japanese only):
https://d-pops-group.co.jp/column/fluctlight-interview/

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Investing in Payke, Inc., the Company Operating a Shopping Support App for Foreign Visitors to Japan
The corporate mission of D-POPS GROUP Co., Ltd. (Shibuya, Tokyo; CEO: Kazuhiko Goto; referred to as “our group” from here on; URL: https://d-pops-group.co.jp/en), is to multiply the number of growth companies (so-called “unicorn companies”) that will revolutionize society. In accordance with this, our group has made an investment in Payke, Inc. (Headquarters: Naha, Okinawa; CEO: Keisuke Furuta; referred to as “Payke” from here on; URL: https://payke.co.jp/), the company responsible for operating a shopping support app for foreign visitors to Japan. Background Since 2017, our group has actively promoted the business strategies of mergers and acquisitions (M&A) and corporate venture capital (CVC), with the goal of “realizing a Venture Ecosystem”. Our group has now grown into a large-scale organization with 23 group companies and 28 investment companies (at the time of publishing), expanding its support for startup companies and businesses. Payke develops and operates a shopping support app by the same name for foreign visitors to Japan. The Payke app allows users to scan existing product barcodes with smartphones or tablets to translate information into the user’s language and provide product details that cannot fit on the packaging. Additionally, they offer inbound tourism-focused advertising and data analysis services. Our group has focused on real-world businesses, including our founding company D-POPS Corp., which operates approximately 50 mobile phone shops mainly in the Kanto area of Japan, and DIVE Inc., one of our group’s investment companies, which runs resort job placement services. Through this investment, we aim to develop stronger business collaborations and support the further growth of Payke, Inc.   This graphic shows that Payke has the highest ranking in the app store in Taiwan, Hong Kong, and Macau for inbound shopping guide apps, with over 5 million total users and over 650,000 supported products as of 2024. Comment from Keisuke Furuta, President and CEO of Payke, Inc. I would like to express my sincere gratitude to D-POPS GROUP for recognizing Payke’s business vision and potential, and for supporting us through financial investment. At Payke, we have continued to develop features that allow people around the world to enjoy cross-border shopping beyond language barriers. Through receiving this investment, we will learn together and achieve further service enhancement and technological innovation to deliver the Payke platform to more people. Particularly in the rapidly growing inbound tourism market, we are fully committed to evolving our product to provide foreign visitors with more convenient and enjoyable shopping experiences. Additionally, through our advertising and data services, we aim to support the success of many companies and serve as a bridge for stimulating inbound consumption and foreign currency acquisition. Our team is united in continuing our challenge to meet the expectations of D-POPS GROUP, which believes in Payke’s potential and supports us. We will strive for further growth and value creation to become an indispensable presence for our users and partner companies. We eagerly look forward to your continued support. Comment from Kazuhiro Goto, President and CEO of D-POPS GROUP Co., Ltd. I am very pleased that our investment in Payke means another wonderful partner has joined our Venture Ecosystem that we are promoting. Japan is expected to see an increasing number of foreign visitors in the future. Payke’s shopping support app for foreign visitors is an excellent service that removes language barriers for tourists visiting Japan, allowing them to travel more comfortably. I greatly anticipate that the spread of such services will help to expand Japan’s cherished tradition of ‘omotenashi’ (hospitality). Our company’s business stretches broadly across the areas of telecommunications, IT, and human resources, but we have always focused on what services we can provide to make our customers and clients more comfortable and satisfied. I believe that an app like Payke’s, which eliminates shopping barriers for foreign visitors, is essential for energizing inbound tourism throughout Japan. Above all, the CEO and founder of Payke, President Furuta, is a true entrepreneur who, despite being severely impacted during the COVID-19 pandemic, made a remarkable comeback and has powerfully moved his business forward. I decided to invest because I want to support CEOs such as President Furuta. Our group’s vision of “realizing a Venture Ecosystem” aims to contribute to society by supporting the development of startup and venture companies through creating the stage, environment, and platform that will serve as the fertile ground on which those startups can flourish. Going forward, we will grow together with Payke and strive to enhance the corporate value of both companies. Comment from Genta Sugihara, Advisor to D-POPS GROUP Co., Ltd. The number of foreign visitors to Japan will reach an all-time high in 2024, and this momentum is expected to increase further in 2025. While their purposes for visiting Japan vary widely, including dining, entertainment districts, and scenic tourism, shopping remains one of the primary objectives for all visitors. With the proliferation of social media, Japanese products are gaining attention overseas, and an increasing number of visitors look forward to purchasing these local products. On the other hand, one of the challenges for Japan in becoming a tourism powerhouse is dealing with multiple languages. President Furuta, CEO of Payke, has taken on various challenges with his overflowing vitality and focused on barcodes early on as a universal product identification method to launch the Payke business. Thanks to this app, travelers can understand product features in their native language, read reviews from people in their country, and make informed purchases. The Payke app, which serves as a bridge between Japan and overseas, can be expected to work not only for physical products but also for restaurants, commercial facilities, and various other areas. Through investment activities focused on the intersection of ‘Real Business x People x Technology’, D-POPS GROUP aims to create a Venture Ecosystem where synergies between our group companies naturally emerge. Together with Payke, which has newly joined our ecosystem, we will strive to enhance the travel experience of visitors from around the world and develop Japan’s real economy. Investee Information Company Name: Payke, Inc. Company President and CEO: Keisuke Furuta Address: 203 Clarion House, 2-5-16 Makabi, Naha, Okinawa Established: November 26, 2014 Company Website: https://payke.co.jp/ Investor Information Company Name: D-POPS GROUP Co., Ltd. Company President and CEO: Kazuhiro Goto Address: 32F Shibuya Hikarie Bldg., Shibuya, Shibuya-ku, Tokyo Established: October 1, 2015 (Originally founded on February 4, 1998) Company Website: https://d-pops-group.co.jp/en
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2025.01.16
Investing in BLUEISH Inc., Operator of Industry-Specific AI Workflow “Omni Workspace”
The corporate mission of D-POPS GROUP Co., Ltd. (Shibuya, Tokyo; CEO: Kazuhiko Goto; referred to as “our group” from here on), is to multiply the number of growth companies (so-called “unicorn companies”) that will revolutionize society. In accordance with this, our group has made an investment in BLUEISH Inc. (Minato, Tokyo; CEO: Akira Tameto), which operates the industry-specific AI workflow “Omni Workspace”. Background Since 2017, our group has actively promoted the business strategies of mergers and acquisitions (M&A) and corporate venture capital (CVC) with the intention of realizing a Venture Ecosystem. We have now grown into a conglomerate with 23 group companies and 27 investment companies (at the time of publishing), resulting in an expansion of our ability to support venture companies (i.e., startup companies). BLUEISH operates under the vision of “realizing a society where companies grow through our value creation, and prosperity circulates among all people involved”, and the mission of “digitalizing all business processes to provide unique and irreplaceable value”. The company develops AI solutions centered on the AI workflow “Omni Workspace”. To avoid ending up with only PoC (Proof of Concept) projects, BLUEISH leverages standardized business manuals and know-how from major BPO (Business Process Outsourcing) companies to achieve high-quality AI implementation in a short period. The company optimizes and automates processes end-to-end, from core business operations to peripheral tasks, while maintaining a system for continuous updates even after production deployment. This approach is intended to create a unique, yet irreplaceable AI platform that goes beyond mere operational efficiency improvements to contribute to strengthening corporate competitiveness and creating new value. Our group is actively investing in the AI field to realize a Venture Ecosystem with a diverse variety of industries. Based on this investment, we will proceed with stronger business collaboration to support BLUEISH’s further growth. This diagram illustrates how BLUEISH’s “Omni Workspace” platform transforms the traditional AI development process. It shows the conventional four-step AI development workflow (Planning → Proof of Concept → Development → Operations), and demonstrates how Omni Workspace accelerates and improves each step through semi-automation, speed enhancement, optimization, and streamlining. Comment from Akira Tameto, President and CEO of BLUEISH Inc. Thank you very much for your investment in BLUEISH. By receiving this investment, we intend to further accelerate our AI technology development and service expansion, dramatically speeding up the DX promotion of complex business processes that companies face. Additionally, through collaboration with D-POPS GROUP, we hope to create new synergies and work to deliver a future where more and more companies and people can “share the wealth”. For future pitch events and other important occasions, I’m going to wear the unicorn T-shirt that I received from D-POPS GROUP and do my best to represent our Ecosystem! Comment from Kazuhiro Goto, President and CEO of D-POPS GROUP Co., Ltd. We are delighted to have invested in BLUEISH Inc., and to have another wonderful partner join the Venture Ecosystem we are promoting. We believe that BLUEISH’s BPaaS (Business Process as a Service) business utilizing AI will become increasingly necessary and widespread in society. We are very excited about the prospect of AI utilization spreading even further throughout Japan by embodying AI transformation and achieving complete automation of business processes through “Omni Workspace”. Encountering BLUEISH, a company with such high technical capabilities, felt like a very important opportunity for realizing our Venture Ecosystem. We decided to invest because we wanted to support President Tameto, who is not only an excellent engineer but also has high communication skills and possesses lofty aspirations and a grand vision. Our group’s vision of “realizing a Venture Ecosystem” aims to contribute to society by supporting the development of startup and venture companies through creating the stage, environment, and platform that will serve as the fertile ground on which those startups can flourish. Moving forward, we will grow together with BLUEISH Inc. under President Tameto’s leadership, and work to enhance BLUEISH’s corporate value. Comment from Genta Sugihara, Advisor to D-POPS GROUP Co., Ltd. Generative AI-related startups are emerging daily and evolving at such a breakneck pace (in effect, creating a “red ocean”) that coming in later can also be advantageous. 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Company Name: D-POPS GROUP Co., Ltd. Company President and CEO: Kazuhiro Goto Address: 32F Shibuya Hikarie Bldg., 2-21-1 Shibuya, Shibuya-ku, Tokyo Incorporated: October 1, 2015 (Established: February 4, 1998) Company Website: https://d-pops-group.co.jp/en/
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The corporate mission of D-POPS GROUP Co., Ltd. (Shibuya, Tokyo; CEO: Kazuhiko Goto; referred to as “our group” from here on), is to multiply the number of growth companies (so-called “unicorn companies”) that will revolutionize society. In accordance with this, our group has made an investment in X-Locations Inc. (Shibuya, Tokyo; CEO: Kazusuke Obi), the company responsible for providing a people flow data analysis platform (Location AI Platform®; referred to as “LAP” from here on) and advertisement delivery services utilizing smartphone location data (Location Marketing Service; referred to as “LMS” from here on). Background Since 2017, our group has actively promoted the business strategies of mergers and acquisitions (M&A) and corporate venture capital (CVC) with the intention of realizing a Venture Ecosystem. 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  • Press Release
2024.08.01
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