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[Entrepreneur Interview #03] Kazusuke Obi (X-Locations)

  • Interview
2024.09.19

The Challenge of Turning Location Information into “Big Data” in the Age of Smartphones

Recently, D-POPS GROUP made an investment in X-Locations Inc., which provides people flow data analysis platforms and advertisement delivery services using smartphone location data, and we have begun walking together as fellow members of our Venture Ecosystem.

☆The press release regarding this investment in X-Locations Inc. is here:
https://d-pops-group.co.jp/en/column/x-locations/

For this article, we interviewed Kazusuke Obi, CEO and founder of X-Locations Inc., about the circumstances of the company’s founding and about Location AI Platform® (referred to as LAP from here on), the company’s proprietary system for analyzing people flow data.

① What was the impetus for founding your company?

With the widespread adoption of smartphones, we have entered an era where everyone can use convenient services that utilize our location information (latitude and longitude over time) through smartphone apps. Behind these services, enormous amounts of location data exist as big data in the network. Location information that was previously overlooked as mere “log data” can now be newly collected and analyzed due to recent technological innovations in mobile internet, GPS, GIS, and AI, making it possible to use statistical modeling, visualization, etc., to extract valuable insights. That value will only continue to increase in the future.

Our company is convinced that “a new era of extracting and utilizing useful information from vast amounts of data”, like search engines and generative AI, has arrived. I believed that a platform was needed to utilize this information for daily life and business purposes, so I established X-Locations to realize this vision.

② Please give us a brief summary of your services.

X-Locations’ people flow analysis platform LAP is a service that analyzes location-based big data via AI to provide visualization and other insights.
Additionally, our advertising services utilize people flow data to provide effective advertisement delivery based on the user’s movement history. We support optimization of marketing and tourism initiatives for travelers by utilizing behavioral data of inbound foreign visitors, including inbound advertising and analysis.

③ What points make you superior to any similar companies?

X-Locations’ strongest advantages are as follows:
1. Use of comprehensive, unbiased data sources (sample data)

The sample data that forms the basis of our analysis primarily uses data obtained by smartphones from GPS satellite signals, utilizing data that is not dependent on specific carriers or apps. We have been integrating various data sources and conducting comprehensive location data collection and analysis since before COVID-19, and our ability to provide accurate, unbiased people flow data is a strength that differentiates us from other companies.

2. High-precision location data and proprietary AI analysis technology with no privacy concerns

We provide a proprietary platform (LAP) that can capture highly accurate analysis results and insights (visualization of people’s real behavior) by collecting and analyzing location-based big data at high frequency and utilizing proprietary AI algorithms. By completely disconnecting the acquisition and analysis of location-based big data from the smartphones and their users, there are no concerns about violating personal information, and pinpoint location analysis and visualization are also possible.

3. Smartphone advertising services utilizing Japan’s largest-scale location data

By combining high-precision people flow data with AI analysis, we provide smartphone advertising (i.e., geo-targeted advertising) based on specific areas and behavioral patterns. We also possess one of Japan’s largest collections of increasingly in-demand behavioral data for inbound foreign visitors, which puts us in a position to design effective inbound advertising and promotions. By deploying advertisements at optimal timing and locations based on data for each region and tourist facility, our services enable efficient marketing without waste.

 

④ What have been your biggest challenges since starting the company?

As a startup, working with limited resources (funding, personnel, etc.) to accumulate big data, develop proprietary algorithms and continuously develop our unique user interface, while communicating the usefulness of this newly-emerging “people flow data” to companies and getting them to adopt it.
Also, when we launched our services on the market, it was right when the COVID-19 pandemic hit, so we had to deal with that.

⑤ What do you most expect from shareholders?

It’s certain that the usage of “people flow data” will become extremely fundamental in economic and social activities going forward. We would like to ask for your support in activities that spread the awareness of its usefulness.

⑥ What is the best part about receiving investment from D-POPS GROUP?

Our services have been widely utilized across D-POPS GROUP’s Venture Ecosystem, including both group companies as well as other investee companies. This has created opportunities that serve as catalysts for business development for every company, including ours.

⑦ What aspects of realizing a Venture Ecosystem resonate with you?

Startup companies usually have to focus on growing their businesses by themselves. However, by forming connections within an Ecosystem, they can share information and opportunities, so I resonated with the idea of creating a place like that.

⑧ What is your ideal vision for the company 10 years from now?

In 10 years, I want X-Locations to be a global company.

⑨ What challenges do you foresee in achieving that future?

Developing the necessary technology and building the right partnerships. By “partnerships”, we don’t mean just recruiting reseller partners for our products, but partners who will also contribute to the Ecosystem as third parties on our people flow data analysis platform.

⑩ Any closing comments you’d like to briefly share?

We sincerely thank D-POPS GROUP for advocating for our mission, and for supporting us in both funding and business development.

Company Information

Company Name: X-Locations Inc.
Company President and CEO: Kazusuke Obi
Address: 6F Kobayashi Bldg., 1-2-9 Ebisuminami, Shibuya, Tokyo
Established: January 2018
Company Website: https://www.x-locations.com/

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In other words, from having an altruistic heart and love. And also, when an opportunity presents itself, making sure to properly convey the vision and social impact I am trying to achieve. I feel that when people are on the same page as me, our bond deepens; sometimes they support or help me; and in the end, it becomes a good connection. Sugihara: You as an individual and D-POPS GROUP as a company are involved in many social contribution activities, such as supporting the “Walking Together Hand-in-Hand with Children Foundation” and the non-profit organization “bond Project”. Are these efforts in CSR activities also based on your idea of improving your luck? Goto: Yes, that’s right. My desire to help suffering children—even just a little—is pure, but when I put my energy into activities like these, I also have this mysterious feeling that good fortune will come to me as a result. However, even if good fortune doesn’t come, I think it’s a natural human instinct to wonder if you can do something to help when you see a child or a person who is suffering. Sugihara: So, you’ve grown D-POPS GROUP to this large size through your management skills, your constant effort, and being blessed with good fortune and great connections. The company’s sales have surpassed 30 billion yen, and it is already big enough to be listed on the Tokyo Stock Exchange, even under the newly-revised listing requirements. Could you tell us why you are choosing to remain unlisted? Goto: Naturally, I understand the benefits of being a listed company, but my management style is quite unique, so I think it would be difficult for all investors to understand it. I’m constantly investing with a medium-to-long-term vision (I don’t worry too much about short-term results), and I devote about 15% of my time to the activities of the aforementioned foundation that supports abused children. Another form of volunteering I do is to spend about 20% of my time on the so-called Goto School (supporting the individual growth of entrepreneurs), which I convene when requested. If I were the president of a listed company, my mission would naturally be to focus on producing results for my company, and I feel that doesn’t fit with who I am right now. However, listed companies have already emerged from within our Venture Ecosystem, and many more are expected to be born from it in the future. Sugihara: So, for you personally, going public is not a goal or an objective. On the other hand, you support startups aiming to go public by offering investment and management advice. You also have a vision of building a platform that will produce numerous “unicorns”. What kind of support activities do you engage in, both as an individual and as D-POPS GROUP? Goto: Honestly, this is also difficult to answer in one word. I could say that I am available to entrepreneurs and business owners for advice and questions 24 hours a day, 365 days a year. I fully mobilize all my knowledge, experience, know-how, network, and the majority of my time for the sake of CEOs who are going through a particularly tough phase or to the leaders of growing companies that are experiencing a growth curve. And as balls get tossed into my court from every angle, I use my 27 years of experience and database to provide support. As an active business owner who has managed many companies, and now with almost 60 group and investment companies, holding Goto School for representatives from 300 companies, and other various activities in my life, I believe there are extremely few business owners in the world in a similar position as mine. That’s why I work hard every day with the belief that I must be the one to create a Venture Ecosystem in Japan. When I’ve been able to guide the CEO of a company on the verge of bankruptcy to make a V-shaped recovery, I can truly feel the social significance of my work. Sugihara: Although it’s a private company, the board of directors and advisory team have a truly impressive lineup. You have also gradually increased the number of advisory members, including myself. As much as you can share publicly, could you explain your thoughts on the meaning and purpose of this structure? Goto: Frankly speaking, I am a total expert in management strategy, so I believe that technical matters are best handled by professionals in those fields. In that sense, I think it’s very important to have many “super specialists” on my team of advisors, and I find them all to be incredibly reliable. The people we support are entrepreneurs, and as such, they won’t listen to someone unless that person has skills that are on another level. Because of this, I am always on the lookout for such people, hoping that even just one of them will join our team every few years. The members of our Board of Directors and our advisors are my mentors, coaches, and sometimes even feel like a father, an older brother, or an older sister to me. In other words, the Venture Ecosystem is also functioning for my own growth, and I am always being helped by it.   Interview conducted by D-POPS GROUP’s advisor Genta Sugihara. D-POPS GROUP Company President and CEO: Kazuhiro Goto Address: 32F Shibuya Hikarie Bldg., 2-21-1 Shibuya, Shibuya-ku, Tokyo Established: October 1, 2015 (Founded: February 4, 1998) Website: https://d-pops-group.co.jp/en/   Next, in the latter part of the interview, we discuss: ・Success stories unique to the ecosystem ・The complexification strategy ・The “ideal form” of a Venture Ecosystem ・Venture Ecosystem Summit 2025 ・And other topics Be sure to check it out here: https://d-pops-group.co.jp/en/column/executive-interview02-latter-part/
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These were not short-term, but year-round long-term internships, totaling about 20 people. They would work on projects, sometimes for a few hours a week and sometimes full-time. We would love for these excellent students to join us, but recently, so many of them are talented enough that they go on to work for companies like CyberAgent, DMM, and IBM. Sugihara: How did such talented students come to apply for an internship at @Solution? Matsutani: After receiving their feedback, we found that last year, there was an overall trend among engineers toward using the more “packaged” technologies like Flutter for mobile. However, students with some experience wanted to work on in-house projects through a lab-based or contract development model like ours, where they could really get their hands dirty writing native code. The more ambitious students had a strong desire to personally experience writing code from scratch, which is why they applied for our internship. During the initial orientation, we tell them this: “Since our management philosophy is ‘Developing the Next Generation’, we want you to gain extensive experience here and become a successful professional.” We believe that Japan’s IT sector still has plenty of room to grow compared to other countries, so an increase in highly skilled IT talent benefits the whole country. We look forward to connecting with them as future partners. Sugihara: Ah, so this is where your management philosophy truly comes to life. It would be fantastic to see cases where students who interned at @Solution thrive as skilled IT professionals and later rejoin the company a few years down the line. What are your future recruitment strategies? Nishikawa: We currently have about 35 engineers, but we plan to increase that number. Our maximum goal is to reach around 200 members within the next 10 years. Sugihara: That’s a great target! Will you be hiring mid-career professionals as well as new graduates? Matsutani: Yes. More specifically, we intend to focus on hiring inexperienced individuals. We are looking for young people, especially in their 20s, who are studying at coding schools or even those who are self-taught. Since becoming an engineer requires interest, curiosity, and passion, we want to hire those who are motivated and studying on their own initiative. ◆“Realizing a Venture Ecosystem” Sugihara: D-POPS GROUP’s vision is to increase the number of growing startup companies that bring about societal transformation. In short, we aim to “realize a Venture Ecosystem”. What are your thoughts on this Venture Ecosystem? Nishikawa: First and foremost, I feel incredibly fortunate to be part of this community every day. Particularly on the financial side of things, D-POPS GROUP provides us with an extremely encouraging and reassuring environment. While managing finances is originally a huge part of running a company, the assistance we receive as a part of the group allows us to concentrate entirely on our core business, so we are truly grateful. Without this environment, we wouldn’t even be able to discuss recruitment plans or consider strategic investments. We feel incredibly supported. Matsutani: I have essentially the same impression as Co-president Nishikawa. I believe this is a truly unique and interesting environment and structure. The individual members of the Venture Ecosystem are relentless challengers, yet they are incredibly kind, gentle, and cooperative. It feels like we are comrades, but at the same time we also have a healthy competition, and it’s rare to find both of those deeply rooted in a single culture. Here, we can pursue many challenges, and the structure for taking on those challenges is already in place. For example, having advisors readily available for consultation is a huge benefit. I am deeply thankful to be in this environment. Sugihara: That’s very true. D-POPS GROUP emphasizes two things regarding challenges. First, to increase the probability of success for those who take them on. We strive to create mechanisms and environments that—even if they aren’t perfect—are just what people need. Second, if an endeavor doesn’t succeed, they can try again within the Ecosystem. We have many examples of successful re-attempts. Matsutani: Exactly. There is internal competition, mutual assistance, and abundant opportunities to generate group synergy, which is a great benefit. When most people hear M&A, they picture strict supervision from the head office, but there is virtually none of that in D-POPS GROUP. We have meaningful support systems without suffering from someone breathing down our necks. ◆Group Synergy (Collaboration among the 3 IT Companies) Sugihara: I believe President Goto prioritizes respecting the will of each company’s managers, working with them to build up those companies, because he can understand those business leaders’ feelings better than anyone. Speaking of the Venture Ecosystem, I heard that @Solution recently started a business collaboration with Techbeans and Idealump. How did this three-way partnership come about, and what is its current status? Matsutani: Originally, the companies in our group who had IT engineers were only @Solution and Techbeans, and we were already collaborating, with us joining projects accepted by Techbeans, and vice-versa. When Idealump joined the group last year, there was one more IT engineering company, allowing us to formalize the collaboration further. So, we currently have various forms of partnership: all three companies are involved in certain projects; we hold joint proposals; sometimes two out of the three collaborate between each other. We are also planning to create opportunities for members to get to know each other and host joint study sessions for all three companies. We plan to accelerate these efforts going forward. Sugihara: Speaking of study sessions, there was a business presentation and Q&A session recently held by BLUEISH, one of D-POPS GROUP’s investment companies. I remember BLUEISH’s President Tameto having a very engaging discussion with Co-president Nishikawa at the social gathering afterward. Are there any insights you’ve gained from members of the Venture Ecosystem like that? Nishikawa: It was a very lively discussion! President Tameto had quite a big impact on me. His presentation style was memorable, but the actual business content was a shock: he explained how they originally did contract work but pivoted to AI based on industry trends, specifically focusing on AI Agents. AI utilization, or AI-driven development as it’s often called now, was an area where I honestly felt my knowledge was lacking. While I could understand some of what President Tameto was saying, I had a strong realization that I needed to do more research. From that point on, I began to change the focus of my own input. I feel that the BLUEISH study session directly led to my idea of wanting to offer consultation services that utilize AI. It was an extremely valuable learning experience. ◆5-Year Goals and How to Get There Sugihara: I’m glad the session was beneficial. We will continue to create opportunities for collaboration within the Venture Ecosystem. Could each of you share where you think @Solution will ideally be in five years and the challenges you face in reaching it? Nishikawa: First of all, from a financial standpoint, I believe sales are important. @Solution is currently a ¥300 million company, and I want that number to become ¥3 billion. To achieve that, all members, including myself, must level up our skills. We will focus on applying AI and lab-based development, and continue to work on improving our skills while acting as project partners for our clients. The most important thing, and I feel this strongly, is for the two of us to grow as leaders. The reason I feel this way stems from attending the all-hands meeting for Findstar GROUP about two years ago, after being invited by President Goto. At that meeting, Findstar GROUP’s President Naito—who is also the Non-Executive Director of D-POPS GROUP—said, “The growth of a company, or how far it can take a leap, is truly limited by its top leader.” That message really stuck with me. We tend to focus on employee growth, but I feel that unless we, the leaders, raise our own ceiling first, the company’s ceiling will not rise. Therefore, our initial focus is on our own growth. Matsutani: I want us to become the hub for digital talent within D-POPS GROUP. I strongly want our company, as well as Idealump and Techbeans, to become the go-to place that everyone consults when they want to pursue anything digital. The prerequisite to achieving this is to continuously learn and absorb knowledge, as this ecosystem offers many learning opportunities—especially for business leaders—and then to produce more output as a result. For me personally, I want to create a greater sense of community, so I will need to act on that premise as much as possible. ◆Message to Readers Visiting Our Website Sugihara: Finally, could you each offer a closing message to the readers visiting our website? Nishikawa: Thank you for reading our interview. We are a team of system and IT experts, so if you need anything IT-related, please think of us first. And let’s go out for a drink sometime, ha ha! Matsutani: D-POPS GROUP is a truly fascinating group of people, so if you are interested, please feel free to visit us in Shibuya Hikarie!   Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.   @SOLUTION Co-president & CEO: Katsuto Masuda Co-president & COO: Akio Nishikawa Co-president & CFO: Yorito Matsutani Address: 32F Shibuya Hikarie, 2-21-1 Shibuya, Shibuya-ku, Tokyo Established: July 2005 Website: https://atmarksol.jp/
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2025.06.09
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