- Rakuten is helping Helsing navigate Japan's complicated military procurement system
- Helsing's HX-2 strike drone is already undergoing trials with Japan's military
- Japan's expanding defence budget is attracting overseas military technology companies
Rakuten has revealed it is now working with German defense AI startup Helsing to bring the company's military drones into Japan.
The Tokyo-based ecommerce and finance conglomerate is acting as the local broker between Helsing and Japan's Ground Self-Defense Force.
Field tests of Helsing's HX-2 strike drone began earlier this year and will run through the end of September 2026.
Rakuten's role in the deal
Helsing says it reached an "initial agreement" for the Japanese government to use its systems earlier in 2026, brokered through an unnamed local partner.
That partner was Rakuten, according to Nikkei, which first reported the tie-up between the two companies.
Rakuten has little defense industry experience of its own, but it wants to help more startups enter Japan's defense sector.
Hideaki Mukai, Chief of Staff to Rakuten's CEO, said startups face structural barriers including complex procurement systems and difficulty reaching government agencies.
"Encouraging greater participation for startups in Japan's defense industry presents an important opportunity to strengthen the country's defense capabilities," he said.
Mukai added Rakuten hopes to bridge these gaps by connecting startups and emerging technologies with the needs of government agencies.
At the moment, there is no official confirmation from Japan's Ground Self-Defense Force about the arrangement.
A pattern for Rakuten and a market for Helsing
Rakuten previously helped Ukrainian drone software maker Swarmer demonstrate its technology to a unit of Japan's military in late April.
That test used AI software to coordinate a swarm of drones in a seek-and-hit mission over Japanese territory.
Rakuten founder Hiroshi Mikitani has been among Japan's most vocal supporters of Ukraine since the war began in 2022.
His company has also helped other Ukrainian defense firms exhibit their products at arms fairs held across Japan.
Japan's rising military spending, combined with its recent easing of arms export restrictions, has drawn strong interest from overseas defense firms.
Many of these companies are now searching for local partners capable of navigating Japan's complex procurement environment.
Helsing was founded in 2021 and initially focused on building AI software to analyze battlefield data for clients.
The company has since expanded into autonomous strike drones, underwater surveillance systems, and military aircraft applications worldwide.
It holds contracts with several European governments and supplies Ukraine with drones funded by the German government.
In July 2026, the Munich-based firm raised $1.8 billion in a single funding round, its largest to date.
That round cemented Helsing's position as Europe's best-funded defense technology startup, ahead of rivals across the continent.
Via Bloomberg
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