A1A, Supporting Procurement Transformation in the Automotive Manufacturing Industry, Raises Approximately 1 Billion JPY in Series B Round
A1A Inc., provider of the procurement data platform 'UPCYCLE' for the automotive industry, has raised about 1 billion yen in a Series B round led by JAFCO. Funds will accelerate AI development for cost reduction and team expansion.
📋 Article Processing Timeline
- 📰 Published: April 24, 2026 at 18:00
- 🔍 Collected: April 24, 2026 at 09:31
- 🤖 AI Analyzed: April 24, 2026 at 09:57 (25 min after Collected)
A1A Inc. (Headquarters: Chiyoda-ku, Tokyo; CEO: Shuhei Matsubara; hereinafter 'A1A'), provider of the procurement data platform 'UPCYCLE', has raised a total of approximately 1 billion JPY in its Series B round. This includes a third-party allotment of shares led by JAFCO, with participation from i-nest capital, Ignition Point Venture Partners, and Mizuho Capital, alongside debt financing.
The raised funds will be allocated to strengthening the development of features that systematically realize cost reductions and to expanding the organization. The company aims to grow the organization to about four times its current size and achieve implementation in 120 companies, mainly completed car manufacturers and major parts manufacturers, by 2028.
The 'Dual Cost Pressure' Surrounding the Manufacturing Industry and the Risks Posed by Procurement Dependency on Individuals
Currently, the Japanese manufacturing industry is facing unprecedented upward cost pressure from both the outside and the inside. From the outside, the tariff policies of the Trump administration, rising geopolitical risks, soaring crude oil and transportation costs, and increased procurement costs for raw materials and parts due to the prolonged weak yen are compounding. Furthermore, the wage increase pressure accompanying the exit from 30 years of deflation, and the promotion of price pass-throughs by suppliers triggered by the Subcontracting Act (Act on the Promotion of Proper Subcontracting Transactions) enacted in January 2026, are directly hitting the cost structure.
In the manufacturing industry, procurement costs are said to account for about 60-70% of sales. For instance, in a company with 1 trillion JPY in sales, procurement costs would amount to approximately 600 billion JPY, meaning a mere 1% price change results in a 6 billion JPY fluctuation in profit. The role of the procurement department in deciding 'who to buy from' and 'at what price' now directly determines the competitiveness of Japanese companies.
On the other hand, a fundamental issue of 'dependency on individuals' has existed in the practical work of procurement departments for many years. Estimates, drawing information, communications with suppliers, and cost reduction know-how are dispersed among individuals in charge of procurement, and until now, there has been no system to utilize this organizationally. If this state continues, procurement outcomes will continue to rely on the skills and experience of individual staff members, risking the obstruction of reproducibility and overall optimization. The harsher the cost environment becomes, the more fatal this issue is for companies.
'UPCYCLE' Resolving Procurement Issues
To solve these issues, A1A released the procurement data platform 'UPCYCLE' for the automotive manufacturing industry in July 2024. UPCYCLE centralizes tacit knowledge—such as estimates, drawing information, communications with suppliers, and cost reduction ideas, which previously could not be systematically collected and utilized—into structured data. Furthermore, by creating a workflow for procurement tasks before and after mass production, it provides a mechanism where data is naturally accumulated and utilized.
It has been implemented by completed vehicle manufacturers and major parts manufacturers. Moving forward, by utilizing this accumulated explicit knowledge with AI, A1A will realize an environment where anyone can conduct standardized, high-quality estimate assessments and discover and examine cost reduction opportunities, evolving into a platform that contributes to corporate profit across the entire organization.
Funding Overview
Amount raised: Approximately 1 billion JPY
Funding method: Third-party allotment of shares and loans
Shareholders: JAFCO, i-nest capital, Ignition Point Venture Partners, Mizuho Capital
Use of Funds
The funds raised this time will be mainly allocated to the following product development and recruitment activities.
1. Product Development: Leveling Data Utilization and Realizing Specialized AI
'UPCYCLE' has digitized estimates, drawings, and communications with suppliers, which were previously difficult to structure. Moving forward, we will strengthen the AI feature group that can systematically achieve cost reductions by utilizing this accumulated explicit knowledge.
2. Strengthening Recruitment: Expanding Organization Size by Approx. 4 Times in 2 Years
We aim for a 30% implementation share among domestic automotive companies, centered on completed vehicle manufacturers and major parts manufacturers, by FY2028. We also aim to expand our organizational scale to four times its current size.
Comments from CEO Shuhei Matsubara
Since our founding, we have provided IT tools to contribute to the outcome generation of procurement departments. On the other hand, what I strongly feel is that 'introducing tools alone does not yield results'. To create true results, it is necessary not only to utilize tools but also, in some cases, to change the way of working, the organizational structure, and the very ideal state of procurement buyers.
What we aim for is to become a 'partner in procurement transformation'. We want to be the existence that procurement departments genuinely aiming for transformation want to partner with first. As the first step toward that, utilizing this funding, we will further accelerate AI-driven decision-making support and organization building.
Comments from Underwriters
JAFCO Group Co., Ltd.
The raised funds will be allocated to strengthening the development of features that systematically realize cost reductions and to expanding the organization. The company aims to grow the organization to about four times its current size and achieve implementation in 120 companies, mainly completed car manufacturers and major parts manufacturers, by 2028.
The 'Dual Cost Pressure' Surrounding the Manufacturing Industry and the Risks Posed by Procurement Dependency on Individuals
Currently, the Japanese manufacturing industry is facing unprecedented upward cost pressure from both the outside and the inside. From the outside, the tariff policies of the Trump administration, rising geopolitical risks, soaring crude oil and transportation costs, and increased procurement costs for raw materials and parts due to the prolonged weak yen are compounding. Furthermore, the wage increase pressure accompanying the exit from 30 years of deflation, and the promotion of price pass-throughs by suppliers triggered by the Subcontracting Act (Act on the Promotion of Proper Subcontracting Transactions) enacted in January 2026, are directly hitting the cost structure.
In the manufacturing industry, procurement costs are said to account for about 60-70% of sales. For instance, in a company with 1 trillion JPY in sales, procurement costs would amount to approximately 600 billion JPY, meaning a mere 1% price change results in a 6 billion JPY fluctuation in profit. The role of the procurement department in deciding 'who to buy from' and 'at what price' now directly determines the competitiveness of Japanese companies.
On the other hand, a fundamental issue of 'dependency on individuals' has existed in the practical work of procurement departments for many years. Estimates, drawing information, communications with suppliers, and cost reduction know-how are dispersed among individuals in charge of procurement, and until now, there has been no system to utilize this organizationally. If this state continues, procurement outcomes will continue to rely on the skills and experience of individual staff members, risking the obstruction of reproducibility and overall optimization. The harsher the cost environment becomes, the more fatal this issue is for companies.
'UPCYCLE' Resolving Procurement Issues
To solve these issues, A1A released the procurement data platform 'UPCYCLE' for the automotive manufacturing industry in July 2024. UPCYCLE centralizes tacit knowledge—such as estimates, drawing information, communications with suppliers, and cost reduction ideas, which previously could not be systematically collected and utilized—into structured data. Furthermore, by creating a workflow for procurement tasks before and after mass production, it provides a mechanism where data is naturally accumulated and utilized.
It has been implemented by completed vehicle manufacturers and major parts manufacturers. Moving forward, by utilizing this accumulated explicit knowledge with AI, A1A will realize an environment where anyone can conduct standardized, high-quality estimate assessments and discover and examine cost reduction opportunities, evolving into a platform that contributes to corporate profit across the entire organization.
Funding Overview
Amount raised: Approximately 1 billion JPY
Funding method: Third-party allotment of shares and loans
Shareholders: JAFCO, i-nest capital, Ignition Point Venture Partners, Mizuho Capital
Use of Funds
The funds raised this time will be mainly allocated to the following product development and recruitment activities.
1. Product Development: Leveling Data Utilization and Realizing Specialized AI
'UPCYCLE' has digitized estimates, drawings, and communications with suppliers, which were previously difficult to structure. Moving forward, we will strengthen the AI feature group that can systematically achieve cost reductions by utilizing this accumulated explicit knowledge.
2. Strengthening Recruitment: Expanding Organization Size by Approx. 4 Times in 2 Years
We aim for a 30% implementation share among domestic automotive companies, centered on completed vehicle manufacturers and major parts manufacturers, by FY2028. We also aim to expand our organizational scale to four times its current size.
Comments from CEO Shuhei Matsubara
Since our founding, we have provided IT tools to contribute to the outcome generation of procurement departments. On the other hand, what I strongly feel is that 'introducing tools alone does not yield results'. To create true results, it is necessary not only to utilize tools but also, in some cases, to change the way of working, the organizational structure, and the very ideal state of procurement buyers.
What we aim for is to become a 'partner in procurement transformation'. We want to be the existence that procurement departments genuinely aiming for transformation want to partner with first. As the first step toward that, utilizing this funding, we will further accelerate AI-driven decision-making support and organization building.
Comments from Underwriters
JAFCO Group Co., Ltd.