Rakuten

Rakuten was founded in February 1997 by Hiroshi Mikitani. The Japanese word 'Rakuten' means optimism. The company started as a small online marketplace and has since expanded globally to offer a wide range of services including e-commerce, fintech, digital content, and communications. Over the years, Rakuten has acquired a number of companies globally to expand its reach and expertise in various domains. Hiroshi Mikitani, an alumnus of Harvard Business School, aimed to create a company that could compete against major players in the market by focusing on empowering small businesses. Rakuten's business model was distinct in its focus on empowering merchants to build direct relationships with customers, which was the key to its initial success in Japan.

Rakuten went public on the JASDAQ market (now part of the Tokyo Stock Exchange) on April 19, 2000. The initial public offering (IPO) marked a significant milestone for Rakuten, allowing it to raise capital to fuel further growth and expansion in the e-commerce sector. The decision to go public was driven by the company's rapid growth and the need to establish a robust financial foundation for future operations. Going public helped Rakuten gain visibility and credibility in the business community, solidifying its position as a key player in the online shopping space in Japan and later worldwide. The funds raised from the IPO were strategically invested in technology, marketing, and partnerships to enhance the platform's capabilities and user experience.

In 2005, Rakuten acquired LinkShare, a leading affiliate marketing network based in the United States. This acquisition was part of Rakuten's strategy to expand its international presence and diversify its service offerings. LinkShare was known for its effective online marketing strategies and allowed Rakuten to provide more value-added services to its users and partner merchants. This acquisition marked Rakuten's entry into the U.S. market and enabled the company to leverage LinkShare's network to expand its reach and improve its technological infrastructure for advertising and affiliate marketing. The move was seen as a step forward in Rakuten’s ambition to become a global internet services organization.

Rakuten purchased Buy.com, a U.S.-based online retailer, in 2010 for $250 million. This acquisition was a key part of Rakuten's strategy to expand its e-commerce footprint in the United States and to compete with leaders such as Amazon. Buy.com allowed Rakuten to access a broad base of customers and provided an established infrastructure to bolster its market presence in North America. The acquisition facilitated cross-border selling and helped international sellers reach U.S. customers more efficiently. After the acquisition, Rakuten rebranded Buy.com to Rakuten.com Shopping in 2013 to unify its brand identity and align the acquired platform with its global operations. The deal symbolized Rakuten's significant step in becoming a global powerhouse in online retail.

Rakuten acquired the Canadian e-reader company Kobo for $315 million in 2011. Kobo was a leader in e-reading technology, providing a platform for selling e-books and e-readers. The acquisition was a strategic move for Rakuten to enter the digital content market and expand its offerings in the e-commerce ecosystem. With Kobo, Rakuten gained access to a fully integrated platform that covered hardware, software, and a rich library of e-books available in various languages. This acquisition enabled Rakuten to compete with global giants like Amazon and Apple in the digital publishing and e-reader market. As a result, Rakuten's presence in the digital content market was significantly boosted, promoting its global brand image.

In 2014, Rakuten acquired the global messaging service Viber for $900 million as part of its strategy to penetrate the communications sector and enhance its digital ecosystem. Viber had a strong user base worldwide, particularly in regions like Europe and Southeast Asia. The acquisition was intended to create synergies between Rakuten's existing services and Viber’s communication platform, tapping into the growing demand for instant messaging and free-calling services. Rakuten envisioned leveraging Viber's technology to develop new services and integrate communication tools into its e-commerce and digital content offerings. The deal marked a significant expansion into a new business domain, reinforcing Rakuten's ambition to become one of the leading internet service companies globally.

In 2015, Rakuten rebranded Buy.com to Rakuten.com and Play.com in the UK to Rakuten.co.uk, among other international sites, to unify its global branding. This strategic move was designed to enhance brand recognition and provide a consistent shopping experience to international customers. The rebranding effort also included integrating services and technology across its international sites to leverage synergies and provide better customer service. By rebranding its global sites under a unified name, Rakuten aimed to strengthen its presence and market positioning in global e-commerce. The initiative was part of a broader strategy to create a cohesive brand image while focusing on customer-centric services.

In 2017, Rakuten signed a four-year deal to become the main global sponsor of FC Barcelona, one of the most popular football clubs in the world, beginning in the 2017-2018 season. The sponsorship deal was valued at €240 million, highlighting Rakuten's commitment to expanding its brand recognition globally. This strategic partnership provided Rakuten with exposure to millions of football fans globally and was part of a broader strategy to associate the brand with international sports and forward-thinking entities. Through this sponsorship, Rakuten aimed to communicate its innovative and dynamic brand qualities to a diverse audience across various markets, significantly enhancing its global visibility and influence.

In 2023, Rakuten Mobile launched its 5G services in Japan, offering faster and more reliable internet connectivity to its customers. This launch was an essential milestone for Rakuten's telecommunications division, emphasizing its commitment to becoming a significant player in the telecom industry. With the introduction of 5G technology, Rakuten Mobile aimed to deliver superior customer experiences through high-speed network capabilities, supporting applications like IoT, AR, and other data-intensive services. This move was part of Rakuten's broader initiative to disrupt the Japanese telecom market dominated by incumbent players. By leveraging its innovative mobile architecture, Rakuten sought to offer more competitive pricing and better service quality to attract a larger customer base.

In October 2023, Rakuten announced its acquisition of the Japanese supermarket chain Seiyu from Walmart. This acquisition represented a major expansion of Rakuten's footprint in the physical retail space in Japan, complementing its existing e-commerce operations. By acquiring Seiyu, Rakuten aimed to leverage its digital platform to integrate online and offline shopping experiences, thereby creating a seamless omnichannel environment for customers. Seiyu, which has been a trusted supermarket brand in Japan, provided Rakuten with a robust physical store presence, enabling new synergies in logistics, product offerings, and customer service. This acquisition demonstrated Rakuten's determination to innovate and lead in the retail sector by integrating digital solutions with traditional retail formats.