28th, 2021 October 1st, 1991 Main Business Activities New ﬁnancial business Planning, development, and operation of Mercari US Planning, development, and management of internet services Planning and development of cryptoasset- and blockchain-related services Operation of a soccer club Management of Kashima Soccer Stadium Representative Naoki Aoyagi John Lagerling Yuki Ishikawa Naoki Aoyagi Fumiaki Koizumi Locations Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6143, Japan 1. Palo Alto, CA 2. Portland, OR 3. Boston (Cambridge), MA Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6143, Japan Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6143, Japan Higashiyama 2887, Aō, Kashima, Ibaraki, Japan Company Overview Mercari, Inc. Founded Main Business Activities Representative Locations Ofﬁces February 1st, 2013 Planning, development, and operation of the Mercari marketplace app Shintaro Yamada Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6118, Japan Tokyo, Sendai, Fukuoka The Mercari Group is made up of Mercari, Inc., and its consolidated subsidiaries. Merpay, Inc. Mercari, Inc. (US) Kashima Antlers F.C. Co., Ltd. 3 Souzoh, Inc. Mercoin, Inc.
President (Chairman of the Board) CEO of Kashima Antlers F.C. Co., Ltd. John Lagerling Senior Vice President CEO of Mercari, Inc. (US) Naoki Aoyagi Senior Vice President CEO of Merpay, Inc. CEO of Mercoin, Inc. Hirohisa Tamonoki Senior Vice President CEO of Mercari Japan Chief Product Ofﬁcer Jun Yokota Senior Vice President, Corporate Shuji Kawano Senior Vice President, Strategy Sayaka Eda Chief Financial Ofﬁcer Keisuke Sogawa Chief Information Security Ofﬁcer / CTO of Merpay, Inc. / CISO of Mercoin, Inc. Shinji Tanaka VP of Backend Takashi Kudo VP of Customer Service Tatsuo Kinoshita Chief Human Resources Ofﬁcer Kazuya Nobe Chief Business Ofﬁcer / Chief Marketing Ofﬁcer Jeff LeBeau VP of Analytics / Chief Product Ofﬁcer Ken Wakasa Chief Technology Ofﬁcer Kim Goeun VP of Business Development Noriaki Yoshikawa VP of Public Policy Mayumi Tochinoki Auditor Fumiyuki Fukushima Outside Auditor Toshihiro Igi Outside Auditor Takahiro Shinozaki Outside Auditor
& sell "I want to make society more afﬂuent by ensuring that limited resources are circulated." This is what founder Shintaro Yamada realized while traveling the world, and what led him to create the C2C marketplace known as Mercari. Thanks to technology, individuals around the world can now easily connect to buy and sell from each other. Through Mercari, we aim to establish a society where resources are circulated and where people can accomplish their goals without limitations. Mission 6
distribution to help items ﬁnd their way into the hands of those that need them, we aim to build a circular economy with less waste. Shifting production and consumption from assuming eventual disposal of items to assuming circular use of products and materials
working to their highest potential, the team can achieve large missions that one person alone cannot. In order to create innovation with a big impact on the world, everyone takes on bold challenges and learns from many failures. All members take ownership of their work as professionals in their ﬁeld, learn every day, and commit to showing results. Go Bold All for One Be 8 a Pro
very important for Mercari. Based on the premise of trust, information is kept transparent, and the organization is built ﬂat. We also don’t make more rules than necessary, so as to not limit our members. This is because we believe that everyone’s untied thoughts and actions lead to both personal growth, and a stronger organization. We call this culture Trust & Openness, seeking our ideal organization and people who share Mercari’s spirit. 9
systems: Android, iOS *Can also be accessed through web browsers • Usage fee: Free *Sales fee for sold items: 10% of the sales price • Regions/languages supported: Base specs for Japan/Japanese • Total number of listings to date: More than 2 billion *As of December 2020 Many sellers enjoy having the items they no longer need purchased and used by buyers who need them, and buyers enjoy the feeling of hunting for treasure as they search through unique and diverse items for lucky ﬁnds. In addition to buying and selling, users actively communicate through the buyer/seller chat and the “Like” feature. The Mercari app is a C2C marketplace where individuals can easily sell used items. We want to provide both buyers and sellers with a service where they can enjoy safe and secure transactions. Mercari offers a unique customer experience, with a transaction environment that uses an escrow system, where Mercari temporarily holds payments, and simple and affordable shipping options. 13
Barcode Listing Mercari acts as a go-between in transactions to prevent disputes - Flat-rate shipping across the country - No need to write addresses - Anonymous shipping - Automatic data entry - Price suggestions Seller Buyer Listing Payment notiﬁcation Buyer rating Balance Payment Seller rating Delivery
on Mercari easily from this unstaffed mailbox. We plan to place Mercari Posts in 5,000 locations across the country by 2023 to expand shipping location options for our users. At-Your-Service Shipping Simply ship all your listed items to a warehouse, and we’ll store the items until they sell, as well as pack and ship them for you once they do. Yu-Packet+ Ship items by simply dropping the package off in a mailbox. We strive to offer options that allow our users to ship items whenever and wherever they’d like, providing a safe, secure, and convenient experience. Contactless drop-off delivery Have your package dropped off at a location of your choice, so you can receive your items without coming into contact with a delivery worker. Items can be dropped off in a delivery locker, in front of your door, next to a gas meter, etc. Pick & Pack TanoMer Shipping No need to pack up the item; just wait at home and we’ll come to you. This shipping service supports a wide range of item sizes, as well as safe and secure anonymous shipping.
a treasure hunt Mercari is not limited to apparel; the marketplace also carries items ranging from entertainment goods to home appliances to cosmetics. Because numerous sellers are listing their unique, individual items, it’s possible to come across lucky bargains that can’t be found on other services. Mercari also combines the stockpiled transaction data with AI technology to recommend items that match a user’s tastes, and to make it easier to ﬁnd the items they’re looking for. Even though Mercari is an e-commerce platform, because the experience of buying feels like a treasure hunt, users spend as much time on the app as they do on social media. A diverse lineup of items from all categories Source: Internal documents - percentages of FY2021.6 Q3 GMV for Mercari’s Japan business 17 Sports/Leisure 7% Electronics 9% Ladies’ clothing 19% Entertainment 27% Men’s clothing 15% Cosmetics /Beauty 6% Other 10% 4% Interior goods Babies/Kids 3% 4%
19 Source: “Consumption Behavior Among Users and Non-Users of Marketplace Apps in 2020” Consumer Survey (August 2020) Users have shown an increased interest in saving money, looking for items that are likely to sell secondhand, and recycling.
Mercari Eriko and Kanata (2nd grade) Ozaki Kanata is in second grade. With his mom, he sometimes sells his toys on Mercari, and also crafts made of sea glass he picks up from the beach to earn a little bit of money. According to his mom, Mercari is the best way to teach children about money. Making life changes with Mercari Mr. Kudo (80s) Mr. Kudo lives in Chiba Prefecture, and started using Mercari after his daughter and her husband, who live in Tokyo, invited him to move near them. As part of his ﬁnal arrangements, he started selling Buddha statues, ukiyo-e prints, kimonos, and other belongings left by his parents on Mercari. Now, he’s super excited selling on Mercari. He says he wants to get rid of things he doesn’t need and go to his daughter’s in Tokyo. A new purpose in life with Mercari The Hikawas Ms. Hikawa (right) is the daughter of a woman in her 80s, a seamstress who has run a sewing factory for 60 years. After her father, who ran the sewing factory with her mother for many years, passed away, and her mother retired, she thought she needed to help her ﬁnd a new passion in life. That’s how her mother started selling clothes on Mercari. “My mother made a beautiful dress out of a kimono, and when she sold it on Mercari, people started to buy and comment to thank her and give their thoughts. My mother said that if they are so happy with it, she’ll just have to keep sewing. This has given her a new purpose.” Mercari: The best way for creators to sell their work Kirari Ando (20s) Kirari Ando is a heavy user: she has been using Mercari for about 4 years, selling smartphone cases she makes herself, and buying mainly beauty and other everyday items on Mercari. "If you are an independent creator, Mercari is the best way to sell your work. Mercari users respond very well, and they show their appreciation the most, so it's really fun and exciting," she says. 20
veriﬁcation Since February 2019, listers have been required to provide their personal information (address/full name/date of birth) when registering. A user’s sales balance cannot be withdrawn if the name registered does not match the name of the bank account for the balance transfer; this prevents fraudulent listings, such as stolen goods. Compensation If a product arrives damaged or defective, we offer returns and compensation. Eligible items include unintentionally purchased counterfeit goods, items with a defect or damage not included in the description, and shipping fees for when an accident occurs with Mercari Shipping. Mercari strives to ensure legitimate items are safely delivered to the buyer, but in the event that a user purchases counterfeit or defective goods, they are also eligible for a return or compensation. Awareness activities for adolescents and educators We hold educational activities across the country for middle school and high school students, as well as parents and teaching staff, where we teach them how to avoid trouble on marketplace apps, to ensure they can use Mercari with a sense of security. 23
Mall Operator Category of the FY2020 Best Contributors to Product Safety Awards (PS Awards 2020) In the Ministry of Economy, Trade and Industry’s Product Safety Awards, which are held to encourage greater commitment to improving product safety and to ﬁrmly establish the value of product safety throughout society, Mercari was recognized for the following initiatives: - Having the CEO participate in discussion of rules regarding listed items - Monitoring rule-violating listings and transactions using automatic detection systems and customer service investigations - Responding to notiﬁcations from METI regarding product recalls and other notices issued by businesses due to product safety issues - Coordinating with manufacturers/importers to provide recall information to users (Recalled Items Program) Mercari’s Strengths: Safe & Secure Recalled Items Program Mercari responds to requests to delete items that infringe IP rights as stipulated by the Provider Liability Limitation Act, but this program simpliﬁes and speeds up this process for rights holders. By entering the program, not only are rights holders able to cut down on the time spent on submitting documents every time they ﬁle a claim, but the time to complete their takedown request is also shortened. 24 Intellectual Property (IP) Protection Program Mercari’s Recalled Items Program aims to deliver information issued by manufacturers/importers about product recalls and similar product safety issues directly to Mercari users who own the products in question (users who have listed or bought the item on Mercari). We believe that identifying those who own affected products and ensuring they receive the safety information they need will increase the percentage of items successfully returned to the manufacturer, help prevent accidents, and contribute to manufacturer/importer product safety initiatives.
safe environment C2C marketplaces are built on the premise of mutual trust We must respect each individual’s values and views and not encourage or promote inhumane behavior Examples of prohibited behavior - Transactions of items which endanger the health and/or lives of individuals - Transactions of items leading to illegal/criminal acts - In a state of emergency, transactions of items that are essential to protecting people’s health and/or safety (masks and sanitizer in a pandemic, etc.) - Transactions where item details are unknown - Falsifying item details - Failing to comply with item returns even when there are problems with the item - Listing items the user doesn’t actually have - Listing items without the intent to actually sell anything - Items or behavior that promote discrimination based on race, ethnicity, religion, gender, etc. - Verbal abuse, threatening behavior, etc. The Marketplace Mercari Strives to Be Through these three principles, we aim to be a diverse and free marketplace that everyone can comfortably participate in. In January 2021, we announced our Marketplace Principles, which were formulated through discussions with external experts. Our Terms of Service and Help Center reﬂect our fundamental mindset. By sharing this mindset with all participants in our marketplace, we aim to increase the transparency of rule changes, service decisions, and everything else related to the marketplace going forward.
demand in the primary market and place restrictions Mercari will monitor supply and demand in the primary market and enforce listing restrictions on items that are essential to protecting people’s health and/or safety in an emergency situation such as COVID-19. Ensure user safety with listing restrictions *COVID-19 example 2) Provide information so users feel at ease buying items In cases where demand temporarily outpaces supply for an item causing prices to surge, Mercari will work with primary distribution companies to issue warnings, provide information through blog entries and news articles, and notify users of temporary jumps in price with a price alert feature to ensure that users don’t inadvertently buy items at high prices. (*Scheduled for release in summer 2021) Create an environment where users are provided with enough information to feel at ease buying items Handling items whose prices surge due to unbalanced supply and demand
People who want to list but haven’t done so yet* 19.54 million Mercari MAU Would like to list if Mercari improved some of its features, or if listing was easier - Want to list items - Would like to list items someday Total number of listings While the total number of listings is growing steadily, we estimate that there are 36.1 million people who want to list items but haven’t done so yet. 1. Based on a survey conducted in April 2021 that polled 9,189 men and women aged 18 to 74. Survey contractor: Macromill Lister prospects recognize Mercari and intend to list items, but have not listed anything yet; the survey does not take into consideration app DL or buying experience. 2. Some lister prospects are included in MAU. 2 Billion December 27, 2020 Million items
market for C2C EC marketplace apps in Japan grew to 1,958.6 billion yen (12.5% increase from the previous year) over seven years. This is enormous growth considering that C2C marketplace apps only started to gain traction in 2012, and the market continues to hold great potential for growth. 1,740.7 billion JPY 2019 C2C EC Market Size in Japan 1. Source: “FY2020 E-Commerce Market Survey Report”, Ministry of Economy, Trade and Industry The C2C EC market refers to the sum of the marketplace app and online auction markets. 2. Source: Company information. Mercari JP GMV from July 2020 to June 2021 3. Source: Ministry of Economy, Trade and Industry (April 2018). Estimated total value of items described as “items that became no longer needed over the past year.” Excludes automobiles, motorcycles, and motor scooters. 2020 C2C EC market1 Approx. 1,958.7 billion JPY (YoY +12.5%) Mercari GMV2 784.5 billion JPY 1,958.6 billion JPY Estimated value of unwanted items3 Approx. 7.6 trillion JPY/year （YoY +12%) 28
listing by providing features like AI Listing and Barcode Listing, which use machine learning, and Easy Listing Integration, which imports items bought using Merpay Online Payments into users’ inventory lists on Mercari *Barcode listing is available for books, music, games, cosmetics/perfumes, and consumer electrical appliances (iOS only) Add items you buy online to your inventory list! Easy Listing Integration
shops, Mercari Posts, and more Create Mercari touchpoints in areas convenient for users’ daily lives with Mercari Station (Mercari's ﬁrst physical shop), Mercari Posts (unstaffed Mercari mailboxes), and more 30 Mercari Station (Shinjuku Marui Main Building)
by integrating primary distribution and secondary distribution *In using data, Mercari will be careful with personal information and utilize data only with user consent. Mercari aims to integrate secondary distribution data with the item data and customer data held by primary distribution companies, using it to visualize the secondary distribution process and other aspects of the item life cycle and customer journey. By doing so, Mercari and its partners will aim to engage customers in the primary distribution market and create new buying experiences and customer experiences, with corporate marketing, product planning, new solution development, and more.
entered a business alliance in February 2020 and began integrating IDs in June of the same year. In early September, the two companies enabled use of a single QR code for d Payment and Merpay. 連 32 Integrate wallets Share merchants d POINT CLUB members: 81.95 million Mercari MAU: 19.54 million Annual use: Approx. 250 billion points Integrate Mercari IDs and d ACCOUNTs to share users Annual GMV: Approx. 784 billion yen 7.5M accounts integrated
over 100 countries, including China, Taiwan, and Southeast Asia In November 2019, Mercari began crossborder sales to more than 100 countries and regions in partnership with Buyee, a proxy service for crossborder e-commerce. In August 2020, Mercari partnered with Shopee, the largest marketplace in Southeast Asia and Taiwan. In March 2021, Mercari also began crossborder sales through Taobao and Xianyu. Both services are owned by Alibaba Group, operator of the largest marketplace platform in China.
operated by Merpay, Inc., under the Mercari Group. With Merpay, users can make payments on Mercari and at 2.06 million stores nationwide, by using the money earned from selling items they no longer need on Mercari, charging money from their bank accounts, or using Merpay Smart Payments. Available at stores across Japan Use Mercari sales balance to pay Pay instantly with the Mercari app
Code Payments Available at 2.06 million iD and Merpay merchants nationwide, including convenience stores, restaurants, drug stores, and fast food *As of March 31, 2021 (merchants with both iD/QR counted once only) 2020.7 Merpay Smart Payments Allows users to defer payment for items based on past usage of Mercari and Merpay Online Payments Enables use of Merpay for not only ofﬂine purchases, but online as well 2020.9 Send/receive Enables users to send their Merpay balance/points to family and friends No-contact service 2019.4–5 Growing Wallet Enables users to utilize their Merpay balance on the peer-to-peer investment service Funds *Second investment fund went live in January 2021 2020.11 2021.3 Shared d Payment/ Merpay QR code Enables use of single QR code for both d Payment and Merpay Virtual card Enables users to easily issue a card number which can be used to pay using Merpay balance at many online stores Identity veriﬁcation using Japan’s Individual Number Card (JPKI) Launched support for identity veriﬁcation using Japan’s public Individual Number Card identiﬁcation service (JPKI) Merpay Smart Payments (ﬁxed-amount) Allows for “ﬁxed-amount payments,” whereby users pay in installments from the following month onwards Mercari Donation Enables donation of Merpay balance, charged from Mercari sales balance or bank account, etc., to local governments and other organizations of the user’s choice
million, with an 80% retention rate for ﬁrst-time users2. 1. Total number of unique users who are registered for Merpay Electronic Money, or used Merpay Code Payments, Online Payments, Merpay Smart Payments, etc. as of June 2021. 2. The ratio of unique users who made a payment using Merpay for the ﬁrst time at an ofﬂine merchant in May 2019, and made a payment using Merpay again the following month. This does not include users who made their ﬁrst payment entirely using points awarded for free. Retention Rate of First-time Users Number of Users Over 10 million Merpay users
In January 2020, Origami Inc. joined Mercari Group through Merpay’s acquisition of Origami shares, and Mercari/Merpay concluded an agreement for a business alliance with Shinkin Central Bank. In the beginning of September 2020, Merpay launched use of a shared QR code between Merpay and DOCOMO’s d Payment service. We have promoted the introduction of Merpay to small- to medium-sized local businesses and conducted Mercari Workshop sessions as well, aiming to create the kind of “highly sustainable, circular economy” where users can take the money obtained from selling unneeded items on Mercari and channel it into these communities with Merpay.
the following month • Fixed-amount payment: Pay in installments over several months • Started services allowing users to use their Merpay balance for asset management and more Payment Credit Growing Wallet Lump-Sum Payment Fixed-Amount Payment Asset Management Pay for everyday purchases all at once the following month Treat yourself now and pay over several months at a ﬁxed amount of your choice •Providing a virtual card in addition to iD payment and code payment iD Code Payment Hold your phone over a reader Scan a code Virtual Card Input a number 1. Launched March 3, 2021
almost anything from home. 45 Your Marketplace Mercari’s mission is to “create value in a global marketplace where anyone can buy & sell,” and the year after our founding, we began to expand overseas. We started our business in the US in April 2014, and we adapted our branding, improved our UI/UX, and created a delivery network to match local preferences and the characteristics of the US market. We recognize that succeeding in the US, with its enormous and diverse population, is an important milestone to achieve our mission, so that is where we are devoting our energy.
beyond beta version (began charging 10% sales fee) 2014 Sep 2014 Released US app beta version 2016 Feb 2017 Opened customer support branch in Portland, Oregon Mar 2018 Mercari US rebranding, app redesign Mar 2019 Opened Boston ofﬁce for AI research Jan 2014 Launched Mercari, Inc. Opened San Francisco ofﬁce 2017 2018 2019 2020 Jun 2017 John Lagerling joined Jun 2020 Reached 100M USD GMV in Q4 May 2018 Opened Palo Alto ofﬁce in the heart of Silicon Valley Nov 2018 Launched Mercari Pack and Ship
service (app and web) at least once during a given month. US Business in Numbers • Sustained GMV of 300 million USD despite seasonal slowdown and changes in consumer behavior with the progress of the COVID-19 vaccine in Q4 • Although MAU decreased temporarily due to seasonality/the COVID-19 situation, we will continue to focus on user acquisition and new feature initiatives YoY +8% YoY +6% (Million users) (Million USD) (Million users) (Million USD) GMV/MAU1
transactions As deﬁned by Mercari, utilizing the following criteria: 1. Mobile First: services developed for mobile use rather than desktop use 2. C2C Focus: services provided primarily to individual consumers, rather than business-oriented users 3. Cross Category: not only fashion categories but multiple product categories simultaneously accessible via the shopping interface. 4. Everything Ships: desired shipping options are selectable and necessary shipping information easily shared within the shopping interface 5. Available only when shipping is selected 6. Commission Revenue Model: range of payment options, such as credit card, bank transfers, and third-party payment (ex. PayPal), are seamlessly embedded into the shopping interface Unique Positioning in the US Market • Mobile First • Cross Category • Everything Ships Marketplace Classiﬁeds Mobile First1 C2C Focus2 Cross Category3 Marketplace Reach (Nationwide) Everything Ships4 Commission Revenue Model6 Other
improved the UI and UX of Mercari US to reﬂect the needs and preferences of our US users. In March 2018, we rebranded, including a logo change, to more effectively build brand recognition in the US. In November 2018, we released Mercari Pack & Ship, a service where users can bring the items they’ve sold to a UPS Store® and have the staff pack and ship them. In 2020, we launched a trial of Mercari Now within San Francisco and New York by partnering with Postmates, a same-day, door-to-door shipping service. We provide a unique Mercari experience by incorporating the speciﬁc needs and preferences of the US. +
price for an item, and automatically adjusts the price within a range predetermined by the user if it has yet to sell. 50 Authentication service Launched in Nov 2019. Provides authentication of brand-name item listings through partnership with an external service. QR code Launched in Aug 2020. Users can easily ship items just by showing a QR code, without a shipping label. Service Optimization
and reduce confusion over price setting - Create an even simpler and more convenient service to promote usage by current users - Grow the market by focusing on increasing awareness of our service and acquiring new users Increase awareness/ acquire new users Continue to invest, with careful consideration for ROI Shipping innovation - Increase regions offering same-day shipping (Mercari Now) - Further innovate shipping
new subsidiary to plan, develop, and manage new businesses. Souzoh aims to plan, develop, and manage those businesses that could become the Mercari Group’s next core business in the mid-to-long term. We believe that the new challenges Souzoh is taking on will contribute to further expansion and development of the Mercari Group, and we are strengthening hiring for necessary roles. 52
value in all its forms With Mercoin, which was established on April 28, 2021, we will work on planning and developing services related to cryptoassets and blockchain technologies. By taking on the cryptoasset business, we will make it even easier for users to utilize ﬁnancial services within Mercari, such as by allowing users to receive payment for Mercari sales in bitcoin and providing a single wallet function that incorporates not only Merpay’s payment and remittance services, but credit, cryptoassets, and asset management features as well. Mercari has also started work on blockchain technologies, which present new opportunities for individuals to exchange value. The company wants to redeﬁne what it means to buy and sell, enabling anyone and everyone to easily exchange value in all its forms—not only as belongings and money, but services and digital content like non-fungible tokens (NFTs).
blockchain technology The product we envision NFT initiatives We would like to use NFTs to circulate new digital content, services, ownership rights, and more to expand Mercari and empower athletes, artists, creators, and other individuals in areas such as art and games. We will make it even easier for users to utilize ﬁnancial services within Mercari, such as by allowing users to receive payment for Mercari sales in bitcoin and providing a single wallet function that incorporates not only Merpay’s payment and remittance services, but credit, cryptoassets, and asset management features as well.
Inc., where he launched various internet services including "Movie Life," "Photozou," and "Machitsuku!". In 2010, he sold Unoh to Zynga. After leaving Zynga in 2012, he went on a trip around the world. In February 2013, he established Mercari, Inc. Shintaro Yamada Proﬁle Aug 2001 Feb 2005 Sep 2010 Feb 2013 Mar 2014 Sep 2015 Nov 2015 Apr 2016 Apr 2017 Sep 2019 Unoh Ltd Representative Director Unoh Ltd renamed to Unoh Inc. Zynga Japan K.K. General Manager (due to acquisition) Kouzoh, Inc. (currently Mercari, Inc.) Founder and CEO Mercari, Inc. Director (current position) Souzoh, Inc. Director Mercari Europe Ltd Director Merpay Ltd Director CEO Chief Executive Ofﬁcer (current position) CEO 56
SMBC, where he managed the IPOs of IT companies including mixi, Inc. and DeNA Co., Ltd. In 2006, he joined mixi, Inc. as Director, Executive Ofﬁcer, and CFO, and supervised the Corporate Division. After leaving mixi in 2012, Koizumi supported a number of startup companies. In December 2013, he joined Mercari, Inc., where he assumed the role of Director in March 2014. He was appointed as President & COO in April 2017. Fumiaki Koizumi Proﬁle Apr 2003 Dec 2006 Jun 2008 Jun 2012 Jul 2012 Dec 2013 Dec 2013 Mar 2014 Sep 2015 Apr 2017 Aug 2019 Sep 2019 President Joined Daiwa Securities SMBC Co. Ltd. (currently Daiwa Securities Capital Markets Co. Ltd.) Joined mixi, Inc. mixi, Inc. Director FreakOut, Inc. Outside Corporate Auditor RAKSUL INC. Outside Corporate Auditor trippiece Outside Director Joined Mercari, Inc. Mercari Director, Corporate Division Souzoh, Inc. Director Mercari COO; Director, Corporate Division Kashima Antlers F.C. Co., Ltd. CEO (current position) President 57 Leadership
Engineering, Yuki Hamada founded CYBRiDGE GROUP CORPORATION and assumed the role of Executive Vice President. At CYBRiDGE, he led software development activities, conducting M&A and launching new businesses. After leaving CYBRiDGE in October 2014, Hamada joined Mercari, Inc. in December 2014. He became a Director in January 2015, and assumed the role of Executive Ofﬁcer in March 2016. As Senior Vice President, Chief Innovation Ofﬁcer (CINO), Hamada currently manages AI, data, and search technologies in addition to R4D research. Yuki Hamada Proﬁle May 2004 Nov 2014 Jan 2015 Feb 2016 Mar 2016 Sep 2019 Sep 2020 CYBRiDGE CORPORATION Founder and Executive Vice President Joined Mercari, Inc. Mercari Director Mercari Director, Product Division Mercari CPO; Director, Product Division Mercari Chief Innovation Ofﬁcer Senior Vice President, Chief Innovation Ofﬁcer (current position) Senior Vice President, Chief Innovation Ofﬁcer 58 Leadership (Senior Vice President)
the Stockholm School of Economics and conducted his master’s thesis research at the University of Tokyo, Graduate School of Economics. After spending seven years at Google in various leadership positions, including Director of Android Global Partnerships, in 2014 he assumed the position as Vice President of Facebook, Inc., where he headed global business development, mobile partnerships, and other business partnership initiatives. Lagerling joined Mercari, Inc. as Executive Ofﬁcer and Chief Business Ofﬁcer in June 2017 and became a Senior Vice President in September 2020. John Lagerling Proﬁle May 2002 Nov 2006 May 2009 May 2010 May 2014 Oct 2014 May 2016 June 2017 Jul 2017 Sep 2017 Sep 2020 Senior Vice President, CEO of Mercari, Inc. (US) Joined NTT Docomo Inc. Google, Inc., Strategic Partner Development Manager, Head of Mobile Business and Product, Japan & Asia-Paciﬁc AdMob, Vice President and General Manager for Japan and Korea Google, Inc. Senior Director Android Global Partnerships Facebook, Inc. VP Business Development, Mobile and Product Partnerships Cronologics Corporation Co-Founder and Board Member Modern Times Group MTG AB Non Executive Board Member Mercari, Inc. CBO Digital Domain 3.0 Non Executive Board Member Mercari, Inc. CBO; Mercari, Inc. (US) CEO Senior Vice President, Mercari, Inc. (US) CEO (current position) 59
he held the positions of CFO, CEO of GREE’s US corporation, and general manager before stepping down from his role as Executive Director in September 2016. In November 2017, he assumed the role of Merpay CEO, and he is responsible for promoting Mercari’s payment and ﬁnancial businesses utilizing his expertise of the ﬁnancial and tech industries on a global scale. He has also held the position of Mercari Senior Vice President since September 2020. Naoki Aoyagi Proﬁle Apr 2002 Mar 2006 Jul 2006 Jan 2011 Mar 2014 Jan 2017 Nov 2017 Dec 2017 Jul 2018 Sep 2018 Sep 2020 Joined Deutsche Securities Limited (currently Deutsche Securities Inc.) Joined GREE, Inc. GREE, Inc. Director GREE International, Inc. CEO and Board Member Glossom, Inc. Representative Director Glossom, Inc. Executive Board Member Merpay, Inc. CEO Crowdworks, Inc. Outside Director Merpay Connect, Inc. Representative Director Mercari Director Senior Vice President, Merpay, Inc. CEO (current position) Senior Vice President, CEO of Merpay, Inc., CEO of Mercoin, Inc. 60 Leadership (Senior Vice President)
joined GMO Cloud K.K., where he handled CS work, a server-hosting business, and the launch of new businesses. In 2010, he joined pixiv Inc. as a company director, supervising areas including system development, marketing, and growth. He was appointed representative director and CEO of animateLAB, Inc. in January 2016, starting its retail-focused IT business. He joined Mercari as a Vice President in February 2017. He was appointed CEO of Mercari Japan as an executive ofﬁcer in October 2018 and assumed his current position as Senior Vice President and CEO of Mercari Japan in September 2020. Hirohisa Tamonoki Proﬁle Apr 2004 Mar 2010 Jan 2013 Sep 2014 Oct 2014 Jan 2016 Feb 2017 Oct 2018 Sep 2019 Sep 2020 Joined GMO Hosting and Technologies, Inc. (currently GMO CLOUD K.K.) Joined pixiv Inc. Executive Ofﬁcer of pixiv Inc. Director and COO of pixiv Inc. Representative Director and Vice President of animateLAB, Inc. Representative Director and President of animateLAB, Inc. Glossom, Inc. Executive Board Member Vice President of Mercari, Inc., Mercari Japan CEO Director of Mercari, Inc., Mercari Japan CEO Senior Vice President, Mercari Japan CEO (current position) Senior Vice President CEO of Mercari Japan / Chief Product Ofﬁcer 61
62 After graduating from the University of Tokyo, Yuki Ishikawa (right) joined Nintendo Co., Ltd. in 2012. In 2014, he joined Moi Corporation (TwitCasting), where he worked on various development projects and new services. He joined the Mercari Group as a member of the previous Souzoh, Inc. in June 2017. Later, he transferred to Mercari, Inc., and in July 2020, was appointed VP of Product at Merpay, Inc. Suguru Namura Souzoh, Inc. Director and Chief Technology Ofﬁcer After working as a contracted developer, Suguru Namura (left) joined CyberAgent, Inc. in 2004, where he worked on launching new media and game services. He joined Mercari, Inc. in 2016. After transferring to the US and leading development of the US version of Mercari, he assumed the role of CTO in April 2017.
able to work comfortably and creatively. Our beneﬁts system, which is loved and called "merci box" by our employees, was introduced in February 2016 in order to provide an environment where members can Go Bold to the fullest and give 100% both inside and outside of the ofﬁce. We also provide a monetary gift to employees who return from maternity/paternity leave, ﬁnancial support for fertility treatment, ﬁnancial support for private preschools, and ﬁnancial support for children who are ill, as well as life insurance for all employees. Maternity/paternity leave Caregiving support Paid childcare and caregiving leaves Financial support for fertility treatments Financial support for childcare costs Financial support for private preschools Support in times of need 63
The Unconscious Bias Workshop is mandatory for managers at Mercari. It is designed to help participants understand unconscious bias (unconscious prejudice) and develop a habit of recognizing unconscious bias in daily life, with the ultimate goal of promoting D&I. (Materials available for free online) In January 2021, Mercari established a D&I council directly under the CEO’s supervision with the purpose of creating an environment where diverse experiences and viewpoints are respected and with the aim of building a competitive team.
ﬁve most important material issues that Mercari should work to solve through its business) to focus on for sustainable business growth. First, we identiﬁed three initiatives that will help create both economic and social value by solving social and environmental issues. These three initiatives are “creating a circular economy,” “culture and education,” and “local empowerment.” We also believe that in order to sustainably create value, we must also take on the initiatives of “safe, secure, and fair transactions” and “compliance and risk management.” Furthermore, we work to strengthen governance as the foundation supporting these corporate activities.
through technology Used by more than 18 million people every month, Mercari focuses on differentiating ourselves through technology. As market competition grows ﬁercer, we believe that using not only our ideas but also advanced technology to make everyone’s life easier faster than any other company is what will make us globally competitive. Mercari is a tech company aiming for the world. Focus on AI At Mercari, we have a data collection of several billion items that we've gathered over the six years since we started our services. These are all photos and item descriptions that our users wrote when using the Mercari app, but this collection is different from that of e-commerce sites since there may be several of these pictures, item names, and details for one particular product. This data is very important for deep learning, allowing us to use pictures and text to create highly accurate machine learning models.
established with the purpose of consulting external experts to get a third-person perspective and strengthening our decision-making process. Members of the Advisory Board include Prof. Jun Murai of Keio University, Prof. Yoshihiro Kawahara of The University of Tokyo, and Woo-Keun Yoon of the National Institute of Advanced Industrial Science and Technology (AIST). 67 We have committed 1 billion JPY (over ﬁve years) to our Value Exchange Engineering collaborative research program with The University of Tokyo RIISE. With this collaboration between academia and industry, we aim to create a world where people all over the world can exchange value fairly and seamlessly. Mercari R4D is working together with the Kawahara Lab, the Niiyama Lab, and the Kakehi Lab from The University of Tokyo and the Nakagawa Lab from Osaka Prefecture University to conduct R&D into Poimo (short for “portable and inﬂatable mobility”), a new electric mobility device. Poimo is a new type of personal mobility that is easily inﬂatable, making it a comfortable size to ride on while also maintaining portability. NEW Mercari R4D was established in December 2017 as a research and development organization to set the concepts of “Research” and the four D’s (“Design,” “Development,” “Deployment,” and “Disruption”) as guidelines for our actions. Currently, in addition to doing research on quantum information technology, blockchain, etc., R4D also carries out activities with the Tech Governance Team, which is involved in policy planning and standardization. Please refer to R4D's website for the latest information: https://r4d.mercari.com/en/
control of Kashima Antlers. • Powerful recognition and reputation • J.League’s top-level management and business development • Promotion of digitization Strengthening business base through technology and business management know-how Energizing local economy by leveraging technology • Marketing and business development • Top-notch technology in the industry • Management supporting rapid growth • Strong bond with Kashima Antlers as its hometown • Tourism development leveraging rich resources Promoting DMO1 (community development) by leveraging tourism resources 1. DMO, Destination Management Organization, takes full advantage of local resources and promotes ”proﬁtable” tourism community development with an aim to effectively and efﬁciently attract customers (as stated in a document prepared by the Japan Tourism Agency) 68
a capital of 20M yen Funding: Acquired 50M yen from East Ventures Funding: Acquired 300M yen from UNITED Renamed company Mercari, Inc. Corporate Jul Launched the Mercari marketplace app Service 69 Jan Mar Apr Oct Nov New company: Founded US subsidiary Mercari, Inc. Funding: Acquired 1.45B yen from Global Brain and others New ofﬁce: Opened the Sendai customer service center Funding: Acquired 2.36B yen from WiL and others New company: Founded UK subsidiary Mercari Europe Ltd Began the ﬁrst television commercials Fully launched the Mercari US app Mercari (JP) began to charge sales fees (free→10%) Hosted the ﬁrst real-life marketplace event 2014 2015 Mar Sep Relocated the head ofﬁce (Roppongi Hills) New company: Founded Souzoh, Inc. to manage new businesses within the Mercari Group Apr Started the “RakuRaku Mercari Shipping” delivery service May Sep Oct Nov
Introduced the beneﬁts system “merci box” Funding: Acquired 8.4B yen from Mitsui & Co. and others New company: Founded UK subsidiary Merpay Ltd Started the content platform “Mercan” Jan Mar Oct Began anonymous shipping for RakuRaku Mercari Shipping Released the community classiﬁeds app Mercari Atte Mercari (US) began to charge sales fees (free→10%) Feb Mar Apr Jun Jul Nov Dec New company: Zawatt Inc. became a wholly owned subsidiary New ofﬁce: Opened the Portland customer service center New ofﬁce: Opened the Fukuoka customer support center Restructuring: Mercari, Inc. restructured Shintaro Yamada became CEO Fumiaki Koizumi became COO John Lagerling, former VP of Facebook, joined Started the Mercari Fund New company: Founded Merpay, Inc. New organization: Established R4D, a research and development team with the goal of social implementation Mar Apr May Jun Jul Aug Nov Dec Released the Mercari UK app Started the “RakuRaku Mercari Shipping for Large-sized Items” delivery service Launched marketplace app for books, CDs, and DVDs Mercari Kauru Started “YuYu Mercari Shipping” delivery service Launched Q&A site “Mercari Box” to resolve questions about Mercari Began test operation of monthly deferred payments to allow users to collectively pay for items they purchased the following month Released live video streaming feature “Mercari Channel” Launched marketplace app exclusively for brand name items Mercari Maisonz Launched ofﬁcial store within the Mercari app Released immediate purchase service “Mercari NOW” Began requiring identity veriﬁcation for initial listings Opened Mercari Channel to corporations Surpassed 100M downloads around the world (JP, US, UK) Corporate Service
New initiative: Released the personnel system for new graduates “Mergrads” Funding: Acquired 5B yen from Japan Post Capital and others Restructuring: Souzoh, Inc. restructured Daisaku Harada became CEO of Souzoh, Inc. Received new listing approval Listed on the Mothers Section of the Tokyo Stock Exchange Naoki Aoyagi became Merpay CEO Rebranded Mercari, Inc. Joined the Japan Business Federation (Keidanren) Dissolved UK subsidiaries Feb Mar Apr Launched bike share service “Merchari” in Fukuoka Rebranded the Mercari US app Launched skill sharing service “teacha” 2019 Jan Feb Mar Jul Oct Closed the Mercari UK app Began requiring identity veriﬁcation when signing up Launched the mobile payment service Merpay Introduced the image search feature “Merchari” succeeded to neuet, Inc. Started the “Yu-Packet+” delivery service Exceeded 5 million users for the mobile payment service Merpay LINE Pay and Merpay formed a strategic business partnership Mercari US opened a Boston ofﬁce for AI research Dissolved Souzoh, Inc. Kashima Antlers F.C. Co., Ltd.. became an owned subsidiary Fumiaki Koizumi appointed as President Hirohisa Tamonoki appointed as a new Director of the Company and CEO of Mercari Japan Mar Jun Jul Aug Sep History Corporate Service
to acquire all shares of Origami Inc. Mercari, Merpay, and NTT DOCOMO formed a business partnership Donated nearly 47 million yen to 9 organizations working to support those impacted by the spread of COVID-19 Established Experts Committee on the Ideal Form of a Marketplace Jan Feb Jun Jul Released the inventory list feature Released the Easy Listing Integration feature Began the pre-opening of Mercari Station, Mercari’s ﬁrst physical shop, in Shinjuku Marui Main Building Enabled users to use d POINTs on Mercari Released sending/receiving features on Merpay Enabled users to use d POINTs on Mercari Released Mercari Donation feature Released Recalled Items Program Began providing a shared QR code for d Payment and Merpay Reached a cumulative total of 2 billion items listed on Mercari Mar Jun Jul Sep Dec 2021 Announced our Marketplace Principles Established Souzoh, Inc. Established Mercoin, Inc. Jan Apr Began crossborder sales through marketplaces Taobao and Xianyu Exceeded 10 million users for the mobile payment service Merpay Mar Apr