German drone maker Helsing taps Rakuten to broker Japan military deal

German defense technology startup Helsing has enlisted Japanese e-commerce giant Rakuten to help finalize a deal for its unmanned systems with Japan's army. The collaboration aims to streamline the process of selling Helsing's advanced drone technology to the Japanese military, which is currently testing the HX-2 strike drone.

Japan's Ground Self-Defence Forces are conducting field tests of Helsing's HX-2 drone, which will continue until the end of September. This initiative is part of Tokyo's broader strategy to modernize its military forces and enhance its capabilities to counter an increasingly assertive China. Helsing had previously reached an initial agreement with the Japanese government earlier this year, facilitated by an unnamed local partner.

“

Encouraging greater participation for startups in Japan’s defense industry presents an important opportunity to strengthen the country’s defense capabilities. Startups often face significant structural barriers, including complex procurement systems, difficulties communicating with government agencies and challenging procurement cycles.

Rakuten's involvement signals its ambition to play a larger role in Japan's defense sector. While the company has limited direct defense experience, it seeks to bridge gaps for startups entering the industry. "Encouraging greater participation for startups in Japan’s defense industry presents an important opportunity to strengthen the country’s defense capabilities," said Hideaki Mukai, Chief of Staff to Rakuten's CEO. He added that Rakuten hopes to connect startups and cutting-edge technologies with government needs, thereby driving innovation.

The Japanese market is becoming increasingly attractive to global defense firms. Japan's significant increase in military spending and its recent easing of arms-export rules have created lucrative opportunities for foreign companies. Rakuten has previously assisted other defense tech firms, including Ukrainian drone software maker Swarmer, in demonstrating their technologies to the Japanese military. Helsing, founded in 2021, has secured contracts with European governments and raised substantial funding, positioning itself as a leading defense technology startup.

“

Rakuten hopes to help bridge these gaps by leveraging our experience and capabilities to connect startups and cutting-edge technologies with the needs of government agencies, further driving innovation and development in Japan’s defense industry.