Sansan - Byebye business cards
Updated: Jan 2, 2021
Sansan's SaaS solution provides an innovative tool and platform that allows companies and employees to share information derived from accurately digitizing business cards.
Since 2015, Sansan's Revenue growth has ranged from a low of 31% to a high of 61% per annum for its service. New growth areas include (1) Virtual Cards – facilitate card exchange virtually; (2) Sansan Plus - connects the primary product to various databases/data points for more effective use; (3) Bill One -accurately digitizes billings, allowing increased efficiency; and (4) Contract One – digitizing paper/pdf contracts and organizing the data and digital signing.
CUSTOMER VALUE. The cloud-based SaaS has two products: the B2B card management service, 92% of its ¥13.4bn revenue,
and it's Business card management app, Eight, 8% of revenue. The value proposition is that the products/platform allows significant streamlining of business card data, facilitating easy sharing, with positive implications on productivity via the visualization of personal connections. Sansan Business revenue grown QoQ and YoY for the last 12 quarters, on both rising subscriptions and higher average monthly sales per subscription, combined with a decreasing churn rate, currently at 0.6%. The mobile app-based Eight Business grew at +90%YoY at the end of FY5/20, on the back of increased B2B Sales.
MARKET. The company estimates that it controls over 80% of the current business card digitization market in Japan. Despite niche dominance, Sansan's overall penetration has
been extremely low: <3% of employees in companies with over 1,000 employees; <2% for companies with employees between 100-999 employees, and <1% for companies with less than 100 employees. This provides strong growth potential for a firm with proven value.
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