ENVALITH
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Mercari, Inc.

4385・Prime Market・Information & Communication

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株式会社メルカリ logo
Mercari, Inc.4385

Business

Mercari, Inc. launched the CtoC marketplace "Mercari (flea market app)" in 2013 and has since grown into Japan's largest flea market app, with approximately 23 million MAU and annual GMV of ¥1,120.9 billion. In Japan, the core business is Japan Business (formerly Japan Region), which operates Marketplace (the flea market app, Cross-Border Trade, the BtoC service "Mercari Shops," and the spot work service "Mercari Hallo") and Fintech (the mobile payment service "Merpay" and the credit card "Mercard"). In the United States, Mercari, Inc. operates the flea market app "Mercari (US flea market app)." The group's mission is to "circulate all forms of value to unleash the potential in all people," integrating the embodiment of a circular economy with business growth.

Business Model

The core of revenue is the transaction fee (10% of the item price) collected when a transaction is completed on "Mercari (flea market app)", so GMV expansion directly links to revenue. In addition, interest income from Credit services such as "Merpay Smart Payment" and "Mercard" (¥25,804 million for the full year ending June 2025) is expanding as a pillar of Fintech revenue. As the user base stabilizes, the structure allows advertising expense ratios to be contained, enabling a high profit margin to be achieved alongside scale-up.

Company Strengths

Since launching the service in 2013, the company has achieved approximately 23 million MAU and annual GMV of ¥1,120.9 billion. A self-reinforcing network effect—more sellers leading to more buyers, which in turn improves liquidity—forms a barrier to competitive entry, and in a 2023 survey it garnered the highest support among those with experience using flea market apps.

The number of Mercard cards issued surpassed 5 million, and Fintech revenue grew 15% year on year. While maintaining a receivables collection rate of 99.3% (FY2025, ended June 2025) through proprietary AI-based credit scoring, the outstanding receivables balance expanded to ¥248.1 billion. Interest income of ¥25,804 million, generated through group synergies, is establishing itself as a second pillar of earnings.

In FY2025 (ended June 2025), the US business achieved its first full-year profit (segment profit of ¥737 million), resulting in profitability across all segments—Japan Business, US, and Other. Group operating profit rose 59.2% year on year to ¥27,840 million, and profit for the year rose 94.0% year on year to ¥26,114 million.

ENVALITH's Perspective

Full-year FY2026 (ending June 2026) guidance was revised upward to revenue of ¥220,000 million or more (up 14.2% year on year) and core operating profit of ¥40,000 million or more (up 45.1% year on year). Against cumulative nine-month core operating profit of ¥34,876 million, the full-year forecast of ¥40,000 million implies roughly ¥5,124 million to be recorded in Q4 alone; management has explicitly stated that "second-half investment is concentrated in Q4," so the scale of Q4 investment and the resulting profit outcome will be key to achieving the full-year target.

The receivables balance expanded 45.0% year on year to ¥328.1 billion, and the surge in interest income can be evaluated as a revenue driver. On the other hand, in a phase of credit expansion, there is a latent risk that the collection rate could decline due to economic deterioration or changes in the employment environment (external factors). While the current collection rate of 99.4% is at a high level, it is necessary to continuously monitor the impact on financial results of an increase in non-performing receivables in absolute terms as the balance scale expands.

The US segment achieved revenue of ¥30,380 million (up 9.2% year on year) and segment profit of ¥1,187 million, turning profitable. GMV is on a recovery trend, up 10.0% year on year to US$602 million, but this includes contributions from temporary measures such as time-limited shipping discount campaigns. Since fluctuations in the foreign exchange environment (an external factor) also affect earnings, achieving both a structural uplift in growth rate through product improvements and investment discipline will be the condition for sustained profitability.

Growth Strategy

Accelerating profit growth through four pillars: AI-native transformation, strengthening Cross-Border Trade, Fintech earnings growth, and US re-growth

Promoting UI/UX renewal leveraging AI/LLM, improving purchase and listing conversion rates, and enhancing customer support efficiency. Cumulative GMV for the third quarter of FY2026 (ending June 2026) reached ¥939.4 billion, up 11.0% year-on-year, confirming continued improvement in the active rate.

Focused strengthening of Cross-Border Trade, a high-growth business, is building the foundation for accelerating GMV growth from FY2027 (ending June 2027) onward. Revenue in the Marketplace domain (Japan Business (formerly Japan Region)) has expanded year-on-year, with Cross-Border Trade serving as one of the growth drivers.

Expanded receivables balance by 45.0% year-on-year to ¥328.1 billion through phased expansion of credit limits leveraging a proprietary AI model. While continuing aggressive investment in acquiring Mercard members, Fintech core operating profit reached ¥7.3 billion, up ¥3.9 billion year-on-year. Maintained a high collection rate of 99.4%.

Strengthening of the core product experience and a limited-time shipping discount campaign, among other measures, proved effective, with GMV up 10.0% year-on-year to US$602 million. Achieved segment profit of ¥1,187 million, turning profitable. Continuing growth investment while maintaining investment discipline.

Last updated: July 17, 2026