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How Rakuten’s Bengaluru-led expansion is transforming India into a global AI innovation engine.
India: Rakuten’s Strategic Tech Powerhouse
In a bold move underscoring its commitment to technological advancement, Japanese conglomerate Rakuten has announced a significant investment of at least $100 million in India. This initiative aims to enhance its technology infrastructure and expand its workforce, particularly focusing on professionals skilled in artificial intelligence (AI).
Currently, Rakuten employs approximately 4,000 individuals in India, with 90% serving in technical roles. The company plans to increase its Indian workforce by 8% in 2025, seeking AI-savvy professionals to drive innovation across its diverse business segments, including fintech, e-commerce, and telecommunications.
AI at the Core of Rakuten’s Operations
Rakuten’s investment underscores its strategic emphasis on integrating AI into its operations. The company is actively embedding AI technologies across various functions to enhance business tools, customer experiences, and employee productivity.
One notable example is the development of the SixthSense platform, an AI-driven system designed to monitor and predict system health issues before they occur. This platform is utilized by clients across sectors such as banking, healthcare, aviation, and government, showcasing Rakuten’s commitment to delivering proactive solutions.
India’s Role in Rakuten’s Global Ecosystem
Rakuten’s Global Capability Centre (GCC) in India plays a pivotal role in the company’s global operations. The GCC contributes to nearly half of Rakuten’s 70-plus businesses, with offices in multiple Indian cities, including two centers in Bengaluru. This strategic presence enables Rakuten to leverage India’s vast talent pool and technological expertise to drive innovation and growth.
Driving Economic Growth Through AI
The integration of AI has not only enhanced Rakuten’s operational efficiency but also contributed significantly to its financial performance. In fiscal year 2024, the company reported a profit of 10.5 billion yen (approximately $73.6 million), attributing this success to AI-driven optimizations. Rakuten aims to double this figure in 2025, reflecting its confidence in AI’s transformative potential.
Moreover, AI tools have streamlined processes such as sales material preparation, reducing the time required by nearly half. This efficiency gain underscores the tangible benefits of AI integration in business operations.
India’s GCC Market: A Growing Opportunity
Rakuten’s investment aligns with the broader growth trajectory of India’s GCC market, which is projected to expand from $64.6 billion in 2024 to $105 billion by 2030. This growth presents significant opportunities for companies like Rakuten to harness India’s technological capabilities and contribute to the global digital economy.
Conclusion: A Strategic Investment in the Future
Rakuten’s $100 million investment in India represents a strategic commitment to leveraging the country’s technological prowess and talent pool. By focusing on AI integration and workforce expansion, Rakuten is positioning itself at the forefront of innovation, driving growth across its global operations.
As India continues to emerge as a hub for technological development, investments like Rakuten’s will play a crucial role in shaping the future of the global digital landscape.
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