#Japan #Minato #Squad #JGIA #SIVA Group

SIVA Group: Transforming Industry-Specific Software

SIVA Group, headquartered in Minato, Tokyo, is on a mission to revolutionize the industry-specific software landscape in Japan. Founded in partnership with the Japan Growth Investment Alliance (JGIA), the company is making headlines as it embarks on a new venture following the complete reinvestment of funds from its predecessor, Squad. The CEO, Minoru Sugiura, who succeeded in growing Squad through self-financing, now leads SIVA Group as it strives to tackle unique challenges faced by niche software companies in Japan.

In recent years, many software firms have been hampered by a lack of successors and slow digital transformation, creating a unique opportunity for the SIVA Group. Established with JGIA's collaboration, SIVA Group aims to support these firms by enhancing their operational efficiency while leveraging state-of-the-art technology. By October 2024, the group has successfully raised over 10 billion yen and completed mergers and acquisitions (M&A) involving four companies, including Squad itself.

The group’s innovative approach involves a proprietary Post Merger Integration (PMI) strategy, which not only facilitates technological upgrades but also enhances profitability across all integrated businesses. This unique model of support goes beyond mere capital injection, offering operational empowerment through a mix of management and technology integration.

SIVA Group's ambitious strategy is based on three core pillars:
1. Achieving Sustainable Business Succession: They focus on empowering the next generation of leaders while preserving the original vision of the founding entrepreneurs.
2. Rejuvenation through SaaS and AI: The goal is to replace outdated legacy systems with cutting-edge SaaS and AI technology, thereby creating a more profitable business structure.
3. Maximizing Group Synergies: By leveraging the diverse strengths of the group’s various companies and sharing SaaS operational expertise, SIVA Group seeks to generate growth that individual companies could not achieve alone.

The group includes notable companies like Squad, VERTICE, Business Brain, and Menu Magazine, each contributing specialized software solutions to different sectors. Squad, the original startup, has transitioned to providing a comprehensive software platform for digital advertising agencies, known as Squad Beyond. VERTICE, set to join the group in September 2024, offers core systems for used car dealers, while Business Brain, coming onboard in April 2025, provides essential management systems for hospitality businesses. Additionally, Menu Magazine aims to revolutionize the e-commerce landscape for supermarkets, bringing timely shopping support to consumers.

An essential driver of SIVA Group’s rapid expansion is the implementation of the HR-Portal, an organizational management system developed by Squad. This system visualizes employee conditions, skills, and task progress based on daily reports, enabling optimal staffing, personnel selection, and improving communication within businesses post-M&A.

With additional M&A opportunities currently in progress, SIVA Group is aggressively expanding its portfolio of niche market software companies. By becoming the cornerstone of outstanding enterprises in their field, SIVA Group is poised to achieve unprecedented scale and growth, aiming for an initial public offering (IPO) worth hundreds of billions of yen.

As they continue their endeavors, SIVA Group not only aims to empower Japanese companies facing challenges in succession planning and modernization but also strives to establish a new model of corporate growth in the Japanese business landscape. Minoru Sugiura, CEO of SIVA Group, remains committed to driving this vision forward, informed by his extensive experience in entrepreneurship, management, and private equity.

In conclusion, SIVA Group is at the forefront of a transformative wave in the software industry, combining legacy with innovation and demonstrating the viability of robust growth models within niche markets, all while benefiting shareholders, society, and employees alike.