Rakuten Bets Big on India With $100M Investment
Japanese internet conglomerate Rakuten has announced plans to invest at least $100 million in India in 2025, aiming to bolster its global operations and enhance its technological capabilities. This strategic move includes an 8% increase in its Indian workforce, focusing on hiring professionals proficient in artificial intelligence (AI).
Sunil Gopinath, CEO of Rakuten India, emphasized the company's intent to scale up technology, infrastructure, and hiring. Currently, Rakuten employs approximately 4,000 individuals in India, with 90% engaged in technology roles. The company is particularly interested in recruiting AI-savvy individuals to integrate AI expertise across various departments.
Rakuten's Global Capability Centre (GCC) in India plays a pivotal role in developing key platforms such as Rakuten Pay and SixthSense—an AI-driven system designed for predictive issue detection. SixthSense is utilized by a diverse clientele, including banks, healthcare providers, airlines, and the Indian government, to proactively identify and address potential system issues.
The integration of AI has significantly enhanced Rakuten's operational efficiency. In fiscal year 2024, the company reported a net profit of 10.5 billion yen (approximately $73.62 million), attributing this growth to AI-driven improvements. Notably, the time required to prepare sales materials was nearly halved, showcasing the productivity gains achieved through AI adoption.
Rakuten's Indian GCC supports about 50% of the company's over 70 businesses, with operations spread across multiple locations, including two centers in Bengaluru. The Indian GCC market is projected to grow from $64.6 billion in 2024 to $105 billion by 2030, aligning with Rakuten's expansion plans and the increasing demand for tech-driven global services.
This substantial investment underscores Rakuten's commitment to leveraging India's technological talent pool and reinforces its position in the competitive global tech landscape.