Foundation: 1997
Headquarters: Setagaya Ward, Tokyo
Chairman and CEO: Hiroshi Mikitani
Executive Summary: Rakuten Group, headquartered in Tokyo, is a leading player in online retailing, electronic commerce, fintech, and mobile industries. Founded in 1997 by Hiroshi Mikitani under the name MDM, Inc., it launched the Rakuten Shopping Mall that year. The company rebranded to Rakuten in 1999 to help sellers reach an online audience. By 2001, after going public on the Jasdaq Securities Exchange, Rakuten had become one of Japan’s most visited websites. That same year, it introduced Rakuten Travel, an online hotel reservation service.
Rakuten’s expansion into financial services began with the acquisition of Aozora Card Company, leading to the creation of the Rakuten Card Company and the introduction of the Rakuten credit card. This was complemented by a rewards and points program for cardholders and online shoppers, alongside the launch of the Rakuten Pay mobile application. In 2008, Rakuten ventured internationally with Rakuten Ichiba Taiwan, eventually expanding e-commerce operations to over a dozen countries.
Rakuten’s portfolio now includes cryptocurrency processing, mobile gaming, product searches, and mobile networks, often through the acquisition of smaller companies to either create or enhance these services. Despite competition from Amazon, which led to the closure of some international marketplaces, Rakuten remains a dominant force in Japanese e-commerce.
In 2021, Japan Post Holdings acquired more than an 8% stake in Rakuten as part of a strategic alliance. Rakuten’s annual revenue is in the range of US$15 billion.
