straya Secures Over 100 Million Yen for Its Security Industry DX Platform

Straya Co., Ltd., led by CEO Takuya Watanabe and headquartered in Shinjuku, Tokyo, has made headlines by successfully securing over 100 million yen in funding. This significant financial milestone will support the development and enhancement of its digital transformation (DX) platform, 'KUMOCAN,' specifically designed for the security industry.

Funding Details and Strategic Goals

The latest funding round was led by DNX Ventures, with participation from DG Daiwa Ventures and various angel investors. The capital raised will be utilized primarily for product development, strengthening sales and customer success initiatives, and enhanced recruitment efforts.

Addressing Human Resource Challenges in the Security Industry

The security industry, which is valued at approximately 3.5 trillion yen in Japan, employs around 590,000 individuals, serving as a critical pillar in maintaining public safety. Despite the growing number of security personnel, there is a stark decline in reported criminal offenses, underlining their importance in society. However, the sector is facing an unprecedented shortage of personnel, making this a daunting challenge for the future.

High Recruitment Costs and Low Popularity

Although the criteria for hiring are relatively lenient, the cost to recruit a single security personnel ranges between 200,000 to 500,000 yen. The job market also highlights alarming statistics: while the average ratio of job vacancies in all industries is 1.35 to 1, the security industry boasts an astonishing 7.45 to 1, with traffic and crowd control roles reaching an extreme 42.9 to 1.

High Turnover Rates

The reality doesn't improve for those who manage to get hired; about 26% of new employees resign within the first month, and nearly 80% leave within a year. With 100% of surveyed companies (300 total) admitting to declining offers due to workforce shortages, it becomes evident that the industry faces a severe structural imbalance.

As Watanabe recalls his time at Indeed Japan, working to support recruitment for large security companies, he observed alarming patterns: millions invested in hiring resulted in a shrinking workforce. This realization sparked his desire to establish straya.

Solutions Provided by straya

Straya’s innovative product, 'KUMOCAN,' addresses the mentioned challenges through a range of digital transformation tools. This platform leverages data to forecast employee turnover and utilize AI for optimal personnel deployment.

Streamlining Operations

Many security firms still rely on outdated methods such as whiteboards and paper documentation for shift management, attendance, payroll, and billing tasks. KUMOCAN aims to digitize and centralize these processes, significantly relieving administrative burdens and allowing personnel to focus more on their core responsibilities.

Evidence-Based Management

Traditional management structures often depend on the memory and intuition of experienced supervisors, making it challenging to maintain consistency across teams. KUMOCAN leverages employee satisfaction data and historical placement information to facilitate optimized personnel management accessible to all, regardless of management experience.

Early Detection of Resignation Signs

Companies using KUMOCAN have successfully detected signs of high turnover intentions among security personnel shortly after onboarding, which fosters preventative measures against resignations.

Economic Impact of Personnel Retention

It’s estimated that each security personnel contributes over 1.5 million yen in annual profit. Preventing a single resignation can directly link to increased profitability and employee engagement across the board.

Future Prospects

With a vision to transform the security field into a career that attracts young talent using technology, straya plans to leverage the customer base and data gathered through KUMOCAN to roll out multiple products addressing various HR challenges in the security industry. The funds raised will accelerate product development, enhance sales and customer support initiatives, and bolster recruitment.

Ultimately, straya aims to comprehensively address all areas of hiring, training, management, retention, and re-employment in the industry, nurturing a profound transformation within a crucial sector of public infrastructure.

Investors’ Insights

DNX Ventures’ Managing Partner and Japan Representative Yoshiki Kurabayashi remarked on the pressing need to reform the security industry impacted by structural personnel shortages. He expressed confidence in straya’s capabilities in leading the industry transformation through its DX platform.

DG Daiwa Ventures has also acknowledged straya's commitment to tackling real industry issues and emphasized the strong potential of the SaaS model in fostering a robust workforce in this sector.

CEO and CTO Message

In a joint statement, CEO Takuya Watanabe and CTO Kaoru Ito expressed their determination to change the negative narratives surrounding the industry. They stressed the importance of embracing technology to transform security roles into sought-after careers and encouraged passionate individuals to join their journey.

Recruitment Initiatives

Currently, straya is actively seeking engineers, sales personnel, customer success representatives, and leadership positions in CxO roles. The company welcomes enthusiastic candidates eager to change industry norms and make a tangible impact.

Company Overview

- Company Name: Straya Co., Ltd.
- Established: June 2023
- Representative: Takuya Watanabe, CEO
- Headquarters: 3-9-7 Nishi-Shinjuku, Shinjuku-ku, Tokyo
- Business Locations: 2-15-1 Konan, Minato-ku, Tokyo, 22F, Shinagawa Intercity A
- Business Nature: Development and provision of the DX platform 'KUMOCAN' for the security industry, recruitment support services.
- Website: straya.jp