Japan's Rakuten is planning to invest at least $100 million in India this year, aiming to bolster its global operations. This investment will focus on scaling up its technology infrastructure and enhancing its workforce, with a particular emphasis on artificial intelligence (AI). Rakuten’s India CEO, Sunil Gopinath, confirmed this in an interview with Reuters, though he did not provide an exact figure beyond stating that the investment would be in "at least three-digit millions."
The company, which operates in diverse sectors such as fintech, e-commerce, and telecom, is increasingly leveraging AI to boost operations. AI will play a central role in enhancing business tools, improving customer experience, and increasing employee productivity across its platforms. Rakuten, which already employs 4,000 people in India, plans to increase its headcount by 8% this year, with most of the new hires expected to be involved in AI-related roles. Notably, 90% of Rakuten's existing employees in India are engaged in tech roles, highlighting the company's strong focus on technology.
Gopinath emphasised that Rakuten is looking for AI-savvy professionals to join its teams. "We look for AI-savvy people that we can intersperse across the company," he said, reflecting the company’s strategy to embed AI expertise across various functions.
Rakuten's India Global Capability Centre (GCC) plays a critical role in developing technologies like Rakuten Pay, a leading payment app in Japan, and SixthSense, a platform used for system health tracking and issue prediction. Gopinath described SixthSense as "almost like Sherlock Holmes," capable of identifying and predicting problems before they occur, helping businesses preemptively address potential issues.
The SixthSense platform has gained significant traction, being used by various clients, including banks, healthcare firms, airlines, and even the Government of India. This wide adoption showcases Rakuten's growing influence and the success of its technology in diverse sectors.
In terms of financial performance, Rakuten has seen impressive results, generating a profit of 10.5 billion yen ($73.62 million) in fiscal year 2024, largely attributed to AI-driven improvements. The company plans to double its profits in 2025 through further AI initiatives, with employees already reducing time spent on sales material creation by nearly 50% as a result of these advancements.
Rakuten's India GCC is responsible for managing around 50% of the company's operations across its more than 70 businesses. The company's operations in India are spread across various locations, including two centres in the southern city of Bengaluru.
The growth of India’s Global Capability Centres is also reflected in the broader market trends. According to a report by Nasscom and Zinnov, the market size of India's GCCs is expected to rise to $105 billion by 2030, up from $64.6 billion in 2024, indicating a robust growth trajectory for the sector.
