Kokopelli Inc.

Business Details

In partnership with 76 regional financial institutions nationwide, the company offers the SME management support platform "Big Advance" as its core service, providing subscription-based functions such as business matching, website creation, subsidy information, and employee benefits. It also offers DX tools (BM Portal, SAF, WebFile) for financial institutions. In February 2026, the company announced the "Big Advance AI Agent Initiative," working to enhance management support through the use of generative AI.

Recent Overview

A confluence of the loss of subsidy consulting revenue, overseas investment, and extraordinary losses led to a sharp swing to a large deficit, with recovery to profitability targeted for the following fiscal year

In FY2026 (ending March 2026), net sales were ¥1,758 million (down 12.4% year on year), and the company recorded a large operating loss of ¥409 million. The main causes were: (1) the loss of large-scale subsidy award success fees in the Subsidy Utilization Consulting business and a decline in the award rate; (2) accelerated large-scale investment in BIG ADVANCE GLOBAL (acquisition of intangible fixed assets of ¥312 million); and (3) extraordinary losses (totaling ¥341 million) comprising a one-time amortization of goodwill related to Kokopeli Management Support Co., Ltd. (¥87 million) and a software impairment loss (¥107 million). The number of Big Advance members also declined to 53,895 companies (down approximately 10% year on year). For FY2027 (ending March 2027), the company forecasts net sales of ¥2,000 million and a return to operating profit of ¥80 million.

Key Products

Growth Drivers

• Advancing the Big Advance AI Agent Initiative: enhancing platform value and aiming to recover member company numbers through more sophisticated management support using generative AI
• Accelerating new adoption of DX tools for financial institutions (BM Portal, SAF, WebFile) to build up recurring stock-type revenue
• Reduced burden of upfront investment in BIG ADVANCE GLOBAL following the completion of large-scale investment in the prior period, with full-scale service operation and monetization expected from FY2027 (ending March 2027)
• Pursuing both operational efficiency and cost containment/profitability improvement in parallel through active use of AI in internal operations
• Maintaining and expanding the subscription-based recurring revenue base through the network of regional financial institutions (76 companies)

Risks

• Dependence on flow-type revenue from Subsidy Utilization Consulting: revenue declined sharply in the current fiscal year due to changes in the subsidy program and a lower award rate, and earnings volatility risk remains going forward
• Continued decline in the number of Big Advance member companies and participating financial institutions (members: 60,172 companies → 53,895 companies; financial institutions: 78 companies → 76 companies), shrinking the existing revenue base
• Uncertainty regarding the timing of monetization for BIG ADVANCE GLOBAL: risk that full-scale service operation and monetization following large-scale upfront investment may not proceed as planned
• Risk of additional impairment of goodwill, software, and other assets: the company recorded an extraordinary loss of ¥341 million in the current fiscal year, and there is uncertainty regarding the recoverability of remaining assets
• Elevated selling, general and administrative expenses: expenses rose significantly to ¥1,174 million in the current fiscal year (from ¥942 million in the prior period), posing a risk of earnings pressure if the recovery in sales is delayed
• Information security risk: risk of cyberattacks and information leaks arising from handling large volumes of highly confidential financial and corporate information