German drone maker Helsing enlists Rakuten to broker Japan military deal

Japanese drone manufacturer Helsing has partnered with Rakuten, a Japanese e-commerce and finance company, to facilitate a potential military deal with Japan's Ground Self-Defense Force, according to a Rakuten spokesperson. The Ground Self-Defense Force has been evaluating Helsing's HX-2 strike drone for use in the country's military, as Japan seeks to modernize its defense capabilities in response to a growing China.

The testing of the drone will continue until the end of September. Earlier this year, Helsing had secured an "initial agreement" with the Japanese government to utilize its systems, facilitated by an unnamed "local brokerage partner." Rakuten's entry into the defense industry comes as the company aims to assist more startups in breaking into Japan's defense sector.

Rakuten's Chief of Staff, Hideaki Mukai, highlighted the challenges startups face in navigating Japan's complex procurement systems and government agency communication, stating that Rakuten aims to bridge these gaps by connecting startups and advanced technologies with government agency needs. Japan's increased defense spending and eased arms-export rules have attracted interest from overseas defense firms seeking local partners.

Rakuten previously aided Ukrainian drone software maker Swarmer in demonstrating its technology to a Japanese military unit. Rakuten founder Hiroshi "Mickey" Mikitani has been a vocal supporter of Ukraine, and the company has also supported other Ukrainian defense firms at arms fairs in Japan. Helsing, founded in 2021, initially focused on AI software for battlefield data analysis before expanding into autonomous strike drones, underwater surveillance, and military aircraft applications.

The Munich-based firm has secured contracts with European governments and defense companies, and raised $1.8 billion in a funding round in July, positioning it as the continent's most well-funded defense technology startup.