fonfun corporation
2323・Standard Market・Information & Communication
Business
fonfun Corporation, listed on the TSE Standard Market, is an information services company operating under the mission "Making society smarter through technology," with two business segments: Cloud Solutions and DX Solutions. In the Cloud Solutions segment, the company provides SaaS-type services to corporate and individual customers, including the SMS distribution service "Bansou SMS," the cloud-based phone service "CallConnect," and "Resudaku," a service for restaurants. In the DX Solutions segment, the company provides end-to-end support for corporate DX promotion through contract system development and engineer dispatch (SES). The company has actively expanded its group through M&A, achieving consolidated net sales of ¥2,111 million in FY2026 (ending March 2026). Its main customers span the full range of domestic corporations, from mid-sized and small-to-medium enterprises to large corporations with strong appetite for DX investment.
Business Model
The Cloud Solutions business builds up stable recurring revenue centered on a SaaS-type monthly billing model. The DX Solutions business is primarily driven by flow-type revenue from contracted software development and IT staffing (SES). Services and personnel acquired through M&A are integrated into the group, creating synergies through cross-selling and shared customer bases. In FY2026 (ending March 2026), the segment profit margin is approximately 35.8% for the Cloud Solutions business and approximately 9.7% for the DX Solutions business, reflecting a structure in which the two businesses have differing revenue characteristics.
Company Strengths
Since 2022, the company has successively acquired and integrated selfree (CallConnect), Groucode Communications, e-Cloud Service, Microwave Digital (MWD), YNP, and others. Consolidated net sales for FY2026 (ending March 2026) reached ¥2,111 million, approximately 3.8 times the level in FY2022 (ended March 2022). The company has a track record of achieving all targets under its first medium-term management plan, "Project Phoenix" (100 engineers, ¥10.0 billion market capitalization, ¥2.0 billion consolidated sales, ¥400 million EBITDA), within the planned timeframe.
The Cloud Solutions segment operates multiple monthly subscription services, including SMS distribution, cloud telephony, and SaaS for restaurants, recording segment sales of ¥956 million against segment profit of ¥342 million (profit margin of approximately 35.8%) in FY2026 (ending March 2026). Through reduced churn rates and continuous expansion of its customer base, the company has secured stable earnings that are relatively resistant to economic fluctuations.
The company has executed a variety of M&A methods, including business transfers, share acquisitions, and absorption-type mergers, as well as a capital participation in an equity-method affiliate (M&A DX Co., Ltd.). Examples include the June 2025 business transfer of the IT freelancer matching business, the August 2025 acquisition of "Rakushin," and the March 2026 conversion of YNP into a wholly owned subsidiary, demonstrating a system capable of continuously executing multiple M&A transactions per year. Relationship-building with financial institutions is also progressing, including a ¥500 million long-term loan from Hokkoku Bank (March 2026).
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026, first year of consolidation), the company recorded net sales of ¥2,111 million, operating income of ¥242 million, and net income of ¥424 million. On a non-consolidated comparative basis, net sales grew 66.4% year on year and operating income grew 61.9%, reflecting rapid expansion. The DX Solutions business led growth with net sales of ¥1,154 million (up 145.3% year on year), driven by the M&A effects of MWD and YNP. The Cloud Solutions business also grew steadily, posting ¥956 million (up 19.9% year on year). Net income substantially exceeded pre-tax income of ¥284 million due to the recognition of deferred tax assets (income tax adjustment of ¥-143 million). Operating cash flow remained positive at ¥251 million, but investing cash flow was ¥-472 million due to M&A investment, while financing cash flow (borrowings) was ¥339 million, indicating a continued reliance on external funding. In terms of the external environment, sustained high demand for "offensive DX" supported growth in the DX Solutions business.
Growth Strategy
Accelerating transformation into a group of core-competency DX companies through roll-up M&A and SaaS expansion
Continuing to promote strategic M&A targeting DX/software development companies, SES companies, and others. In FY2026 (ending March 2026), the company acquired IBT, MWD, and YNP, and in May 2026 acquired the "Sales Performer" business from Diglos Co., Ltd. for ¥340 million. The aim is to simultaneously acquire technical capabilities, customer bases, and human resources.
Strengthening contract development and SES structures to expand capabilities capable of handling diverse development methodologies. Full-year consolidation of YNP Corporation (an SES company with a workforce that is over 90% female) is expected to contribute substantially to earnings from FY2027 (ending March 2027) onward. The group is also promoting the acquisition and development of digital talent across the entire group.
Aiming to reduce churn and maintain/expand stable revenue by enhancing the functionality and convenience of existing SaaS services. "Sales Performer," acquired in May 2026, is being incorporated into the Cloud Solutions Business, and recurring revenue is being built up through cross-selling to an existing customer base of over 4,000 companies.
The company achieved the targets set out in its new medium-term management plan announced in September 2023—net sales of ¥2,000 million, EBITDA of ¥400 million, and a workforce of 100 engineers—in FY2026 (ending March 2026). Actual results for FY2026 (ending March 2026) exceeded these targets, with net sales of ¥2,111 million and EBITDA of ¥453 million, and the company is now transitioning to its next-phase growth strategy.
Last updated: July 19, 2026