- Tram Ho
The corona virus pandemic was a blow to Japanese businesses already familiar with previous business practices, forcing them to adapt to digital signatures and remote document signing. That trend has benefited the trend-takers, like Bengo4.com Inc, one of the few companies offering this service in Japan.
The company’s stock reached a record high on Wednesday, bringing its market capitalization to 191 billion yen (about 1.77 billion USD), 22 times higher than when it was listed in 2014. Particularly from March 13 to date, the company’s stock price has increased 150%. Revenue from digital signature services is expected to double this year and become the main growth engine for the whole company.
Despite being one of the world’s leading internet services, and digital signature services and electronic documents have been around for more than 10 years, the majority of Japanese agencies and businesses The document remains faithful to the physical papers, signed and stamped by a fax machine. But with the Covid-19 pandemic, that habit had to change when people were in isolation and working from home.
Therefore, Mr. Yosuke Uchida, president of Bengo4.com, is very optimistic about the demand for his technology in the future: ” There is no doubt that the use of electronic contracts will become popular. That day will come when the use of electronic contracts has become a routine practice. Viruses have pushed that time significantly faster . ”
Mr. Uchida estimated that the cloud-based digital signature market in Japan could reach 400 billion Yen in the next few years, and the company intends to gain 80% market share here. This means that revenue from Bengo4.com’s cloud-based digital signature service can bring the company up to 1.3 billion yen by the end of March 2021, doubling over the year.
Founded in 2005 as a legal and marketing guide, but after adding cloud digital signature services, Bengo4.com enjoyed explosive growth. The founder, and also a lawyer, had to deal with a huge amount of documents prepared by lawyers for his clients and realized that it was time consuming to stamp and sign those papers. time and bring little value like.
Although Japanese law allows contracts to be signed electronically, it still needs the parties to perform a series of other time-consuming steps to prove the authenticity of each contract.
Meanwhile, Bengo4.com’s signature service not only eliminates those complicated authentication steps, but also has the support of the company’s tens of thousands of available lawyers. It is the acceptance of partner companies for Bengo4.com’s service that has led to the company’s growth so far.
Currently, a survey from JIPDEC, a group promoting technology in enterprises, shows that the proportion of companies using electronic contracts between departments and partners in Japan is about 22%. This shows that the growth potential and popularity are still huge in the future.
Refer to Bloomberg
Source : Genk