Zehitomo

About Zehitomo

Zehitomo operates as an online matching platform in Japan, connecting consumers with local service professionals for a wide array of needs. The company was founded in 2015 by Jordan Fisher and James McCarty, two American expatriates who identified inefficiencies in Japan's local services market. Fisher, who previously worked in finance at J.P. Morgan in Tokyo, was inspired by personal experiences where he found it difficult to find reasonably priced, high-quality local professionals for services like home renovation and wedding photography. This led to the creation of a platform designed to increase market transparency and empower small businesses and freelancers who were often overshadowed by large corporations in online search results.

The platform serves both individuals seeking services and professional service providers. For consumers, Zehitomo offers a streamlined process to find and hire professionals across more than 500 categories, including home services like plumbing and remodeling, personal services like photography and fitness training, and various lessons. For service professionals, the platform acts as a lead generation tool, helping them connect directly with potential clients. Zehitomo's business model is centered on a "pay-per-quote" or lead generation system. Professionals can register for free and then purchase credits, called "Z-coins," which they use to send quotes to potential customers. This approach differs from the commission-based model common in the industry, where a percentage of the final transaction is taken as a fee. The cost per quote is designed to be a reasonable form of targeted advertising for the professionals.

A key feature of the platform is its AI-powered "Speed Match" function, introduced in late 2018. This system automatically matches client requests with the most suitable professionals based on criteria such as location, service type, and price, and can even send proposals on behalf of the professional. This automation helps to solve the issue of supply and demand imbalance, ensuring that clients receive multiple proposals (typically up to five) for comparison. Since its beta launch in 2016 and official release in 2017, Zehitomo has expanded its services nationwide. The company has successfully raised significant funding over several rounds, with a total of $19.6M to $27.4M raised from investors including DG Daiwa Ventures, Coral Capital, and Kakao Investment, to further develop its technology and expand its market presence.