REVOLUTION CO.,LTD. (TSE: 8894) unwound its crowdfunding business on August 31, 2026, selling the subsidiary that ran it to one of its own board members for ¥1mn and simultaneously telling investors it can no longer say what this year's profit will look like.
The buyer is a sitting REVOLUTION director who resigned from the board the same day the deal closed. He is taking REVOLUTION's entire 54.65% stake, 27,576 shares, in WeCapital, the company that ran the crowdfunding platform and controlled real estate crowdfunding subsidiary Yamawake Estate. REVOLUTION had shopped the stake through multiple M&A advisers first; none produced a buyer, and an independent valuer's base-case discounted cash flow put REVOLUTION's holding at zero yen, with an upside case running from ¥4.8mn to ¥849.3mn.
Why the fire sale
The backdrop explains the urgency. Yamawake Estate was hit with a 60-day partial suspension of its real estate joint-enterprise business in February 2026. About ¥8.4bn raised across 12 of its crowdfunding deals now sits in extended terms or deferred redemption, and other deals have already been repaid at a loss to investor principal. In June, REVOLUTION's auditor declined to reach a conclusion on the interim consolidated financial statements for the year ending October 2026, triggering an internal investigation committee with outside experts. The Tokyo Stock Exchange designated REVOLUTION shares for special attention on July 25, citing a pressing need to fix internal controls, and levied a listing-contract penalty.
Under the deal, the director personally guarantees the ¥150mn loan (reduced from an original ¥250mn) that REVOLUTION extended to WeCapital in March, and has committed to cooperate with REVOLUTION's audits and the investigation committee through the year ending October 2027. He recused himself from the board vote approving his own purchase.
Guidance gone, plan shelved
The same board meeting revised REVOLUTION's full-year consolidated forecast, previously calling for ¥46.3bn in sales, ¥4.53bn in operating profit and a ¥382mn net loss, to simply "undetermined" across every line.
| Metric | Prior forecast | Revised forecast |
|---|---|---|
| Net sales | ¥46.3bn | Undetermined |
| Operating profit | ¥4.53bn | Undetermined |
| Ordinary profit | ¥4.2bn | Undetermined |
| Net income (loss) attributable to shareholders | -¥382mn | Undetermined |
REVOLUTION also withdrew the mid-term management plan it published in December, built largely around the crowdfunding business it just sold. Management said it has no plans, and is not considering any, to draft a replacement, choosing instead to prioritize governance and internal-control repairs. Separately, the company redirected proceeds from a warrant issue: money earmarked for crowdfunding-business enhancement fell from ¥1.94bn to ¥150mn, with the balance shifted toward real estate acquisition.
The unfinished report
The internal investigation committee, tasked with resolving the doubts behind the auditor's refusal to conclude, missed its own August 31 deadline. As of 6pm that day REVOLUTION said it had not received the committee's findings; if the report arrives later, the company will check that personal names and confidential details are properly redacted before releasing the full text, likely on the morning of September 1. The financial effect of exiting crowdfunding altogether is, in the company's own words, still being worked out.