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German defense technology company Helsing has brought Japanese e-commerce and financial services giant Rakuten on board to help complete an agreement to supply its unmanned systems to Japan’s military, according to a Rakuten spokesperson.
Japan’s Ground Self-Defense Forces are currently conducting trials of Helsing’s HX-2 strike drone as Tokyo accelerates efforts to upgrade its military capabilities amid growing concerns over China’s increasingly assertive regional posture. The testing is scheduled to continue through the end of September.
A Helsing spokesperson said the Munich-based company reached an “initial agreement” earlier this year for the Japanese government to use its technology. The deal was facilitated by an unnamed local brokerage partner, the spokesperson said.
Japan’s Ground Self-Defense Forces had not immediately responded to requests for comment.
Rakuten’s role in the Helsing deal was first reported by Japan’s Nikkei newspaper. Although Rakuten has relatively little experience in the defense sector, the company is seeking to make it easier for emerging technology companies to enter Japan’s defense market.
Hideaki Mukai, chief of staff to Rakuten CEO Hiroshi “Mickey” Mikitani, said the participation of startups could play a significant role in strengthening Japan’s defense capabilities. He noted that young companies frequently encounter obstacles such as complicated procurement procedures, difficulties engaging with government bodies and lengthy purchasing cycles.
Rakuten, he said, wants to address those challenges by using its business expertise and networks to connect startups and advanced technologies with government agencies, helping accelerate innovation within Japan’s defense industry.
GLOBAL DEFENSE COMPANIES TARGET JAPAN
Japan’s sharp increase in defense spending, combined with the relaxation of its arms-export restrictions earlier this year, has attracted growing attention from international defense companies seeking local partners and access to what could become a highly profitable market.
Rakuten has previously assisted Swarmer, a Ukrainian drone software company listed in the United States, in demonstrating its technology to a Japanese military unit, according to an earlier Reuters report.
The demonstration, held in late April, showcased Swarmer’s artificial intelligence software coordinating multiple drones in a search-and-strike operation in Japan.
Mikitani has been one of Japan’s most prominent corporate supporters of Ukraine. Rakuten has also assisted other Ukrainian defense companies in presenting their technologies at Japanese defense exhibitions.
Helsing was founded in 2021 and initially concentrated on artificial intelligence software capable of processing and interpreting battlefield information. The company has since expanded into autonomous attack drones, underwater surveillance technology and applications for military aircraft.
The firm has won contracts from European governments and defense companies and has supplied drones to Ukraine through funding provided by the German government.
In July, Helsing secured $1.8 billion in a new funding round, making it the best-funded defense technology startup in Europe.
