Foundation: 2013
Headquarters: Minato Ward, Tokyo
President: Shintaro Yamada
Executive Summary: Mercari is a Japanese e-commerce company founded in February 2013 by Shintaro Yamada and his team. They introduced the Mercari app in July 2013 for iOS and Android, which provided a fixed-price customer-to-customer service in Japan. Within three weeks of its launch, the app attracted over 50,000 new users. Designed for smartphones, Mercari allowed users to browse, buy, and sell from their phones, giving it a competitive advantage and making it accessible to those without computers. The app’s interface is user-friendly, enabling quick listings with just a photo and a brief description, and it secures transactions by holding payments until the buyer confirms receipt of the item. Both buyers and sellers can maintain anonymity, enhancing security. Payment options include credit cards, convenience stores, and bank ATMs.
Just a year after its launch, Mercari’s user base swelled to 4.5 million, with daily listings reaching 100,000 items and transactions amounting to US$10 million per day. This rapid growth attracted investments from notable Japanese venture capital firms like East Ventures, Global Brain Corporation, Globis Capital Partners, United Incorporated, and World Innovation Lab. The company expanded to the US market in September 2014. By 2016, Mercari was valued at over US$1 billion, earning it the title of Japan’s first “unicorn” startup. However, this status was relinquished in June 2018 when the company went public, with shares peaking at ¥6,000, briefly valuing Mercari at around US$7.4 billion.
Since going public, Mercari has introduced new services like Instant Pay, Mercari Authenticate, and Merpay. The company reported its first profits in the second half of 2020. Mercari’s annual income is in the range of US$500 million.
