Manufacturing Startup FACTORY X Raises 100 Million JPY in Seed Round

FACTORY X Co., Ltd. (Headquarters: Okazaki City, Aichi Prefecture; CEO: Yoshio Kamiya) has successfully raised a total of 100 million JPY in its seed round. The funding was achieved through the issuance of J-KISS type stock acquisition rights underwritten by STATION Ai Central Japan Fund 1 (co-managed by STATION Ai Corp. and Deepcore Inc.), ANRI Fund 5 (ANRI), and Data Driven Innovation Fund (epiST Ventures Inc.), alongside loans from the Bank of Nagoya and Japan Finance Corporation.

"Inventory Strategy Model": Improving Productivity and Profitability through Strategic Inventory Management

◼︎ Service Overview

In the manufacturing industry, inventory is often viewed as a "necessary evil."

Historically, inventory quantities have been determined based on lead times and aggressively reduced through continuous improvement (Kaizen) activities on the factory floor. However, in today's massive and increasingly complex supply chains, the relentless pursuit of efficiency has eliminated necessary buffers, rendering existing systems incapable of coping when unexpected disruptions occur.

To address this, FACTORY X is developing and deploying the "Inventory Strategy Model," which improves productivity and profitability by strategically maintaining inventory in the manufacturing process.

The Inventory Strategy Model calculates the true value of inventory by structuring production, financial, and risk data. It then determines the "optimal inventory"—the level that maximizes inventory value within a given budget. This approach establishes a unified standard, allowing both top management and factory floor operators to make aligned inventory decisions.

Beyond simply calculating optimal inventory, the model supports factory management decision-making and operational efficiency by enabling economic impact simulation and visualizing manufacturing costs using the integrated data.

Ultimately, as the model is adopted across more factories and enterprises, the goal is to strengthen the resilience of the supply chain across society as a whole.

◼︎ Pre-Seed Achievements

During the pre-seed round, FACTORY X received numerous inquiries regarding the "Inventory Strategy Model," leading to a significantly improved understanding of the real-world inventory challenges and ideal states within the manufacturing sector.

Specifically, the company conducted Proof of Concept (PoC) initiatives primarily with major automotive parts manufacturers, with some companies now advancing to the preparation stage for full-scale implementation. One particular company, which had historically operated under the premise of constant inventory reduction, struggled to return to optimal levels after temporarily increasing inventory during the COVID-19 pandemic. They faced the dilemma of simply "not knowing what the optimal level is."

In response, FACTORY X utilized the Inventory Strategy Model to logically structure the concept of optimal inventory. By quantitatively demonstrating the probability of stockouts and the associated economic impact, they provided a new benchmark for decision-making. As PoCs progress across multiple companies, the validity and reproducibility of the model's logic for calculating optimal inventory are continually being confirmed.

Furthermore, to accelerate the PoC process, the company has already developed a tool combining Excel with an optimization engine, which is currently being utilized in actual verification tests. FACTORY X has now entered the phase of establishing this as a robust product accessible to a wider user base.

Seed Round: 100 Million JPY Raised

◼︎ Background and Objectives

In this seed round, the focus will shift towards establishing a formal product and expanding the customer base, building upon the Inventory Strategy Model validated during the pre-seed phase.

The applicability of the Inventory Strategy Model has been confirmed across multiple manufacturing sites through PoCs. With this round of funding, FACTORY X will fully develop the model into a software product ready for daily use on the factory floor. Concurrently, the company will accelerate the transition to full-scale implementations, aiming to establish the model as the definitive standard for inventory decision-making.

◼︎ Comments from Investors

Hirotaka Sahashi (Representative Director, President & CEO) and Masaya Naito (Investment Planning Office), STATION Ai Corp. "Our relationship with FACTORY X began during the PRE-STATION Ai era, the preparatory phase before our official launch. With the urgent global need to build resilient supply chains, we deeply resonated with their unique approach to solving problems through the Inventory Strategy Model. Today, they have achieved steady business progress, capturing strong demand through multiple projects in the automotive industry. We decided to invest because of their potential for further growth, including applications in other manufacturing sectors and the distribution field. At STATION Ai, we will unite to strengthen our support and contribute to the company's continued growth."

Yuta Motojima, ANRI "Three years since the pre-seed phase, FACTORY X is beginning to provide logical and data-driven answers to the front-line voices saying, 'We don't know what is optimal.' As geopolitical risks and supply chain fragmentations persist, the reality that a singular focus on efficiency is unsustainable has become evident in many factories, making the Inventory Strategy Model more relevant than ever. With PoCs progressing on the ground, the challenge of productization truly begins. We will continue to run alongside them toward a future where FACTORY X's system is deployed in factories worldwide, and ultimately in any operational site globally that holds inventory."