#Japan #Osaka #Ricoh Japan #SmartF #Nexta

Nexta’s Latest Funding and Partnership

Nexta Corporation, based in Osaka, Japan, has successfully completed the first close of its Series B funding round, raising approximately 800 million yen (around 5.5 million USD). This accomplishment is a significant stride towards its goal of a total fundraising target of 1.3 to 1.4 billion yen (approximately 9 to 10 million USD), which also includes the upcoming second close and additional loans.

Funding Overview

In this funding round, Nexta utilized third-party allotment for the increase in capital, inviting new investors including Ricoh Japan, Resona Capital, and China Jianyin Investment. Existing investors, such as Jafco Group and XTech Ventures, also participated, showcasing the confidence in Nexta’s growth strategies.

The funds raised will primarily focus on enhancing product development as well as strengthening hiring and organizational structure.

Challenges Faced by the Manufacturing Sector

The Japanese manufacturing industry is facing significant challenges, primarily due to a labor shortage. Many manufacturing operations remain complex and individualized, often still relying on analog processes. Consequently, the industry sees high costs associated with full-custom software solutions or substantial modifications of existing systems. Coupled with a shortage of skilled personnel for digital transformation (DX) and the difficulty of embedding new systems, overall progress in DX across the industry has stalled.

SmartF: A Game Changer

In response to these industry issues, Nexta developed SmartF, a SaaS-based cloud system designed to integrate common processes in manufacturing environments without requiring customization. This innovative approach allows for a seamless implementation that has made SmartF a preferred choice for many clients.

Recent success stories highlight the effectiveness of SmartF:

• - Case Study: Companies that have adopted SmartF report a 1.5 times increase in revenue per employee without increasing staff, effectively reducing unnecessary tasks and errors.

Business Growth and Market Potential

Nexta is rapidly expanding its operations. Over the past two and a half years, its workforce has increased from 20 to over 120 employees, alongside achieving a sevenfold increase in monthly average sales. Catering primarily to small and medium-sized enterprises, which account for 99.5% of Japan's manufacturing sector, SmartF capitalizes on a market where over 70% still lack implementation of digital solutions.

This sector presents a significant opportunity, with a total addressable market (TAM) of approximately ¥1.8 trillion. Nexta is boldly addressing the obstacles to digital transformation in this challenging yet lucrative space.

Future Strategies

1. Expanding Functional Capabilities: In conjunction with this funding, Nexta plans to release new functionalities such as sales management and sales force automation (SFA) as part of SmartF's evolution into an all-in-one core business system. By the end of the year, three AI agents will be implemented, with plans for 20 specialized AI agents for the manufacturing sector over the next two years.

2. Strategic Alliance with Ricoh Japan: Nexta has entered into a capital and business alliance with Ricoh Japan, leveraging its extensive 341 locations and customer base of over 1 million to accelerate the nationwide rollout of SmartF. This partnership aims to create a robust internal structure for sales, implementation support, and customer assistance for SmartF.

Investor Perspectives

Investors from various companies view SmartF as a necessary solution for supporting small and medium-sized manufacturers who have been hesitant to engage in digital transformation due to cost and effectiveness concerns. Each investor underscores the importance of collaboration and shared vision in driving Japan’s manufacturing sector forward.

Events and Engagements

Nexta is also hosting a Manufacturing DX Conference 2025 in Osaka on December 9, aimed at shedding light on the real challenges and successes in the digital transformation of small to medium-sized manufacturing businesses. The conference will feature speakers who have successfully navigated these transformations.

Additionally, an online casual Meet UP will take place on December 19, focusing on the impact of structural challenges faced by the industry and the implications of Nexta's recent funding strategies.

For more information about participating, visit: Nexta Events.

Conclusion

Nexta is on a promising path toward reshaping the Japanese manufacturing landscape with innovative solutions like SmartF, substantial investments, and strategic partnerships. With an emphasis on enhancing operations, driving digital transformation, and addressing pressing industry issues, Nexta is positioned to significantly impact the future of manufacturing in Japan.