10X

Executive Summary

10X is a company based in Tokyo that runs Stailer, a specialized software service that helps traditional Japanese grocery stores move their business online. They provide stores with custom apps under the store's own branding and tools to manage their stock levels. The company brings in about $50 million in total sales each year but it is not yet making a profit. It lost $15 million last year because it spent heavily to grow the business quickly. A major partnership with Aeon, the biggest retailer in Japan, proves that its technology can handle the needs of a very large corporation. 10X stays ahead of rivals because its software connects deeply with local delivery routes and checkout systems, which makes it very hard for store owners to stop using the service once they start. However, the firm faces big hurdles, such as the fact that only 3% of people in Japan buy groceries online. They also struggle with the high cost and difficulty of making the final delivery to a customer's home. Investors have to decide if these risks are worth the chance to own a company that could lead the digital cleanup of an old-fashioned shopping industry. This initial public offering acts as a test to see if Japan's traditional grocery market is ready to finally change.