PetGo Announces Capital and Business Alliance with Seibu Group

PetGo Co., Ltd. (Headquarters: Nakano-ku, Tokyo; President and CEO: Hiroshi Kurosawa; Securities Code: 7140; hereinafter "the Company") announces that, at a board of directors meeting held today, it resolved to enter into a capital and business alliance agreement with Blue Incubation Co., Ltd. (hereinafter "Blue Incubation"), a subsidiary of Seibu Holdings Co., Ltd. (hereinafter "Seibu Holdings"). The Company also resolved to issue new shares and the 18th series of stock acquisition rights to Blue Incubation through a third-party allotment.

1. Background of the Capital and Business Alliance

Since its founding in 2004, the Company has pursued the management philosophy of "Making Pet Life Happy," focusing on the pet × digital domain, primarily through e-commerce of pet-related products. Currently, the Company operates 14 online stores selling pet products, with cumulative unique purchasers exceeding 2.75 million.

Furthermore, aiming to evolve into a comprehensive platform covering various aspects of pet lifestyles, the Company has brought into its group FLAFFY Inc., which operates pet media businesses, and DogHuggy Inc., which operates a dog boarding matching platform, thereby expanding its business scope beyond product consumption ("goods") into experience-based consumption ("experiences").

To achieve further medium- to long-term corporate value enhancement, the Company recognizes the need to create new customer touchpoints and revenue opportunities beyond its existing e-commerce domain.

Against this backdrop, awareness of pets as "family members" is growing, and the number of pet-friendly facilities is increasing. As a result, the pet outing market—including pet travel, accommodation, dining, shopping, and experiences—is expected to continue expanding. According to the Company's research, the domestic dog outing market (including day trips and overnight stays) is estimated to be approximately 400 billion yen.

To better leverage its digital customer base, data, and marketing capabilities and create new customer touchpoints and revenue streams, the Company believes it is essential to advance OMO (online-merge-offline) initiatives through collaboration with partners possessing physical assets and real-world customer touchpoints.

Given these factors, the Company has decided to enter into a capital and business alliance with the Seibu Group, with which it has previously discussed the future potential of the pet market and possibilities for collaboration.

2. About the Seibu Group

The Seibu Group's core businesses include real estate, hotels and leisure, and urban transportation and沿线 operations. It owns diverse physical assets such as hotels and leisure facilities, commercial facilities, and railways, along with extensive customer touchpoints.

Under the philosophy that "pets are cherished family members," the Seibu Group has been promoting the cross-company initiative "Seibu Pet Smile Project" since 2011, offering services and events to realize a society where people can enjoy living with and taking pets on outings with peace of mind, from the perspectives of accommodation, play, dining, and care.

3. Main Contents of the Business Alliance

The two companies will jointly explore and develop services leveraging their respective physical and digital assets, aiming to create new value in the growing pet outing market.

The main planned initiatives currently envisioned are as follows:

1 Development and operation by the Company of an app targeting pet outings, with development cooperation from Seibu Holdings

2 Planning and development of new pet outing services utilizing physical assets operated by the Seibu Group, including railways, hotels and leisure facilities, and commercial facilities

3 Implementation of customer referral and user expansion measures from the Company's membership base, owned media, and SNS platforms to Seibu Group facilities and new services

4 Support for customer referrals to the Company's e-commerce services using the Seibu Group's customer base, and initiatives to generate new customer inflows and promote cross-selling

5 Joint planning and rollout of events and experiential content at facilities and along transportation lines operated by the Seibu Group

6 Utilization of the Company's digital marketing capabilities, pet-specific expertise, and customer base in support of pet-related initiatives promoted by the Seibu Group

7 Joint planning and development of new services through mutual utilization of data held by both parties

8 Ongoing exploration of collaboration in new and adjacent business areas that enhance corporate value for both parties, including promotion of partnerships with Blue Incubation's existing portfolio companies and partners

[Example of Envisioned New Service: Pet Outing Service]

As part of this capital and business alliance, the Company plans to develop a new app that integrates pet outing services with its e-commerce platform. This app aims to seamlessly connect pet owners enjoying outings with pets to Seibu Group facilities and the Company's e-commerce services.

Leveraging the Company's pet data (such as breed and life stage), the app will recommend optimal outing destinations tailored to pet and owner segments. It may also offer points redeemable on the Company's e-commerce platform based on GPS check-ins at participating locations. Using points as a core mechanism, the Company aims to drive traffic to Seibu Group hotels, leisure facilities, and commercial facilities while expanding its e-commerce revenue.

Beyond this app, the two companies will broadly co-develop and launch services that seamlessly connect everyday "goods consumption" (e-commerce) with non-everyday "experience consumption" (travel, accommodation, dining, shopping, experiences, etc.), aiming to create new value in the expanding pet outing market.

4. Overview of the Capital Alliance

The investing party in the Company under this capital and business alliance will be Blue Incubation, a consolidated subsidiary of Seibu Holdings that invests in promising domestic and international companies and businesses aligned with the Seibu Group's slogan, "Turning Outings into Smiles." Blue Incubation plans to subscribe to the following securities issued by the Company through third-party allotment.

Item

Details

Subscription Target

Ordinary shares and the 18th series stock acquisition rights of PetGo Co., Ltd.

Number of New Shares Issued

332,300 shares

Number of Shares Underlying Stock Acquisition Rights

138,500 shares (100 shares per stock acquisition right, 1,385 rights)

Ownership Ratio After New Share Issuance

14.98% (calculated based on the number of issued shares excluding treasury shares as of March 31, 2026, plus the number of newly issued shares)

Ownership Ratio if All Stock Acquisition Rights Are Exercised

19.98% (calculated based on the number of issued shares excluding treasury shares as of March 31, 2026, plus the number of newly issued shares and shares underlying stock acquisition rights)

Payment Date / Allotment Date

July 15, 2026 (planned)

Commencement Date of Capital and Business Alliance

July 15, 2026

As a result of this third-party allotment, Blue Incubation is expected to become the Company's largest shareholder (major shareholder). For detailed terms including the issue price and exercise price of the stock acquisition rights, as well as full details of the capital and business alliance agreement, please refer to the disclosure materials published by the Company today.

Disclosure materials published today are available here

5. Future Outlook

The pet outing market is expected to continue growing steadily. The Seibu Group, the partner in this capital and business alliance, operates diverse businesses including real estate, hotels and leisure, and urban transportation and沿线 services, and also runs pet care services, giving it a strong advantage in offering an integrated experience of pets' "daily lives" and "non-everyday outings."

Since its founding in 2004, the Company has grown its pet × digital business into a leading e-commerce service for pet products, used by a large number of pet owners, and is actively working toward becoming a comprehensive platform covering all aspects of pet lifestyles. FLAFFY Inc., which joined the Company's group in 2025, operates the dog media platform "FLAFFY.me," the pet outing discovery service "Inu to Ikou yo," and the outdoor dog festival "Japan Wanko Festa," positioning it as a key driver in the pet outing market.

This capital and business alliance represents an OMO strategy combining the Seibu Group's physical assets and customer touchpoints with the Company Group's digital customer base, data, and marketing capabilities, with both parties aiming to create a new "pet outing economic zone." Through this, they aim to build a virtuous cycle where online and offline channels mutually stimulate demand, enabling pet owners to seamlessly move between everyday and special experiences, and between physical and digital environments—ultimately realizing richer pet lives.

*Company names, product names, and service names are trademarks or registered trademarks of their respective companies.

Inquiries Regarding This Release

Public Relations Department, PetGo Co., Ltd.

Harmonia Tower 12F, 1-32-2 Honcho, Nakano-ku, Tokyo 164-0012

E-mail: press@petgo.co.jp

URL: https://corp.petgo.jp