ENVALITH
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DEMAE-CAN CO.,LTD

2484・Standard Market・Information & Communication

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DEMAE-CAN CO.,LTD2484

Business

Demae-can Co., Ltd. is a company specializing in food delivery, established in 1999 and listed in 2006. Its core service, "Demae-can", is a platform that allows users to select and order from restaurants via personal computer, smartphone, or tablet, and it is one of the largest delivery services in Japan, having surpassed 100,000 affiliated stores in December 2021. The company also offers "Sharing Delivery®", a delivery proxy service for restaurants that lack their own delivery capability, building an ecosystem that connects users, affiliated stores, and delivery personnel. As of the end of August 2025, the number of active users stood at 4.55 million. Additionally, "Yahoo! Quick Mart", which was jointly offered with LINE Yahoo, ended its service in August 2025.

Business Model

Revenue consists mainly of three pillars: (1) service usage fees charged to affiliated merchants at a fixed rate applied to order amounts, and delivery agency commissions; (2) shipping fees and cash payment handling fees, etc., collected from users per order; and (3) banner and text advertising revenue from affiliated merchants and general corporations. In FY2025 (ended August 2025), sales results were service usage fees of ¥34,996 million and other revenue of ¥4,724 million, for a total of ¥39,721 million. The company has introduced dynamic pricing for shipping fees, aiming to improve unit economics.

Company Strengths

As of July 2020, the number of affiliated stores was approximately 30,000, but this surpassed 100,000 stores in December 2021, driven by the surge in demand during the COVID-19 pandemic. In addition to major chain stores, popular local establishments in various regions have increasingly joined as affiliates, and the wide-ranging lineup spanning both food and non-food categories has expanded the options available to users.

In September 2021, the company completed fundraising totaling ¥83.4 billion (approximately ¥83,400 million) through an overseas offering and a third-party allotment to Z Holdings and NAVER Corporation. As of the end of FY2025 (ending August 2025), the company held cash and cash equivalents of ¥28,536 million, maintaining sound financial health with zero interest-bearing debt.

"Sharing Delivery®" is deployed nationwide, whereby Demae-can's delivery staff deliver food even from restaurants that do not have their own delivery capabilities. This functions as infrastructure that creates a new market for the food service industry, serving as the foundation for expanding the base of affiliated stores and growing GMV. The company has also established a 24-hour support system for users, stores, and drivers through its customer center.

ENVALITH's Perspective

Full-year FY2026 (ending August 2026) earnings forecast revised downward to net sales of ¥39,200 million and operating loss of ¥7,900 million (both sales and profit/loss deteriorated from the previous forecast). The reason for the revision is that order volume and GMV are expected to fall short of initial assumptions, with the company repeatedly failing to meet its plans. Cumulative nine-month net sales of ¥28,290 million represent a 6.2% year-on-year decline, indicating continued sales contraction. The low achievement rate against the initial plan is heightening investor concerns about the reliability of the company's management plans.

Cumulative cost of sales for the nine months ended significantly increased to ¥28,150 million (vs. ¥25,768 million in the same period of the prior year), causing gross profit to plunge to just ¥140 million (vs. ¥4,402 million in the same period of the prior year). The divergent movement of declining sales alongside rising costs caused the operating loss to more than double, expanding to ¥6,370 million (vs. ¥3,075 million in the same period of the prior year). The increase in costs outpaced cost-cutting efforts (reductions in SG&A expenses), clearly indicating a deterioration in the earnings structure.

Cash and deposits decreased by ¥7,067 million over nine months, from ¥28,536 million at the end of August 2025 to ¥21,468 million at the end of May 2026. If cash continues to be depleted at the pace implied by the full-year operating loss forecast of ¥7,900 million, there is a risk that the current equity capital of ¥22,309 million and cash of ¥21,468 million could be exhausted within a few years. While no note regarding going concern assumptions has been disclosed, the cash burn rate amid uncertain prospects for profitability is a key metric that investors should monitor closely.

Growth Strategy

Realizing the "normalization of delivery" through GMV expansion, unit economics improvement, and user retention

Strengthening the platform's product assortment by expanding the number of merchant partners in both food and non-food categories, aiming to increase order frequency and average order value. However, as of the nine months ended Q3 FY2026, order volume and GMV have fallen short of initial full-year expectations, and the measures' effects remain limited.

Aiming to improve satisfaction and retention among users, delivery partners, and merchants by enhancing the accuracy of estimated delivery times and improving customer service quality. Efforts are ongoing, but revenue has continued to decline year on year, indicating that retention effects remain only partially achieved.

Fixed-cost optimization is progressing, with selling, general and administrative expenses reduced by approximately ¥966 million, from ¥7,477 million in the nine months ended Q3 of the previous fiscal year to ¥6,511 million in the nine months ended Q3 of the current fiscal year. However, a sharp increase in cost of sales caused gross profit to plunge to ¥140 million, and the expansion of losses has not been contained.

A measure aimed at optimizing delivery costs and improving profitability by dynamically setting delivery fees according to supply and demand. As cost of sales continues to rise, the effects of unit economics improvement have not yet been sufficiently reflected in the financial figures.

Last updated: July 17, 2026