Kokopelli Inc.
4167・Growth Market・Information & Communication
Business
Kokopelli Inc. has set forth the vision of "Delivering technology to small and medium-sized enterprises," and operates a BtoB SaaS business centered on "Big Advance," a business support platform for SMEs that leverages a network of regional financial institutions. As of the end of March 2026, the company partners with 76 regional financial institutions and provides, as a single package, functions such as business matching, website creation, subsidy information provision, and employee benefits to 53,895 SMEs across 42 prefectures. In addition, the company develops DX Solutions (BM Portal, SAF, WebFile) for financial institutions, the overseas business matching platform "BIG ADVANCE GLOBAL," and Subsidy Utilization Consulting, positioning the resolution of challenges faced by both SMEs and regional financial institutions as a business opportunity.
Business Model
"Big Advance" employs a subscription-based revenue model consisting of an initial implementation fee and fixed monthly operation and maintenance fees paid by financial institutions, together with a revenue share on the monthly usage fee (¥3,000 per company) that financial institutions collect from member companies. Because revenue accumulates as long as the number of member companies increases on a net basis, this is a stock-type structure, and since staff at financial institutions drive member acquisition, the company's direct sales costs can be kept low. DX tools for financial institutions and subsidy consulting are also added as revenue sources, and revenue expansion is expected through upselling and cross-selling.
Company Strengths
Since its April 2018 launch, the company has partnered with 76 regional financial institutions and acquired 53,895 paying member companies across 42 prefectures. Through a mechanism in which staff at financial institutions drive member acquisition, the company has built a unique sales channel that delivers services to SMEs nationwide without direct sales activity. As a survey finding that 76.6% of SMEs cite financial institutions as their consultation destination indicates, the credibility gained via financial institution channels functions as an entry barrier that competitors find difficult to replicate in a short period.
The average monthly churn rate from April 2025 to March 2026 stood at 1.53%, remaining within the target of under 2%. Under the subscription-based recurring revenue model, the structure allows for stable revenue accumulation once the break-even point is exceeded. Ongoing support from financial institution staff and investment in AI-driven feature improvements and customer success have contributed to curbing churn, while a biweekly version-upgrade cadence also supports retention.
In July 2023, the company was certified as a "Smart SME Supporter (Information Processing Support Organization)" designated by the Ministry of Economy, Trade and Industry. In August 2019, it was also featured as a case study of collaboration with regional financial institutions in the Financial Services Agency's "Progress Report on the Exercise of Financial Intermediation Functions," gaining recognition from government agencies and organizations such as the Second Association of Regional Banks. This trust from administrative bodies functions as a credibility complement in developing new partnerships with financial institutions.
ENVALITH's Perspective
Performance Trend
Revenue declined 12.4% from ¥2,007 million (FY2025 (ended March 2025)) to ¥1,758 million (FY2026 (ending March 2026)). The main causes were the absence of the large-scale subsidy adoption fee recorded in the prior period and a decline in the adoption rate due to changes in the subsidy program. Cost of sales rose to ¥993 million (prior period: ¥867 million), and selling, general and administrative expenses rose to ¥1,174 million (prior period: ¥942 million), with expenses expanding to substantially exceed gross profit of ¥765 million. Extraordinary losses included an impairment loss of ¥107 million, a one-time amortization of goodwill of ¥87 million, and a loss on reduction of fixed assets of ¥147 million (totaling ¥341 million). In non-operating income, subsidy income of ¥202 million related to the Ministry of Economy, Trade and Industry's Global South subsidy was recorded, and extraordinary income included subsidy income of ¥147 million, but these were insufficient to offset the losses, resulting in a net loss of ¥415 million for the period. Over the past five fiscal periods, revenue trended ¥1,643 million → ¥1,776 million → ¥1,821 million → ¥2,008 million → ¥1,758 million, while operating profit trended ¥358 million → ¥64 million → ¥34 million → ¥198 million → -¥409 million, showing a sharp reversal and deterioration following the recovery seen in FY2025 (ended March 2025).
Growth Strategy
Aiming for a return to profitability in FY2027 (ending March 2027) through three pillars: AI agent implementation, expansion of DX tools for financial institutions, and global monetization
In February 2026, the company launched the "Big Advance AI Agent Initiative," aiming to enhance platform value by leveraging generative AI to upgrade management support services. The company is working to increase the number of member companies at participating financial institutions, seeking to recover from the 53,895 companies recorded at the end of FY2026 (ending March 2026).
The company is accelerating new adoptions of its business matching management, AI FAQ, and file-sharing services for financial institutions, aiming to build up recurring revenue. By expanding revenue per financial institution (improving ARPA), the company is promoting revenue diversification away from dependence on the standalone Big Advance service.
Following the adoption of a Ministry of Economy, Trade and Industry Global South subsidy, the company brought forward investment during the current fiscal year (¥312 million in intangible fixed asset acquisitions). As the large-scale investments made through the prior fiscal year have run their course and the burden of upfront investment is significantly reduced, the company will work toward monetization through full-scale service operation in FY2027 (ending March 2027).
The company is actively utilizing AI in internal operations to improve operational efficiency, promoting both cost containment amid business expansion and improved profitability in parallel. Reducing selling, general and administrative expenses (¥1,174 million), which increased in FY2026 (ending March 2026), is a prerequisite for returning to profitability in FY2027 (ending March 2027).
Last updated: July 19, 2026