German drone manufacturer Helsing has partnered with Japanese e-commerce and finance company Rakuten to facilitate a deal with the Japanese military. A Rakuten spokesperson stated on Monday that the partnership is intended to help finalize the sale of Helsing’s unmanned systems to Japan’s Ground Self-Defense Forces.
The collaboration comes as Tokyo seeks to modernize its military equipment. The Japanese Ground Self-Defense Forces are currently conducting field tests of Helsing’s HX-2 strike drone, which are scheduled to continue until the end of September. Helsing previously reached an initial agreement with the Japanese government earlier this year through an unnamed local partner, which has now been identified as Rakuten.
Rakuten, which has limited experience in the defense sector, stated its goal is to help technology startups navigate the complex procurement and communication systems of government agencies. Hideaki Mukai, Chief of Staff to Rakuten’s CEO, said the firm hopes to bridge gaps between cutting-edge technologies and government needs. Helsing, founded in 2021, recently raised $1.8 billion in July and has already provided drones for Ukraine with German government funding.
The scale of the investment is significant, as Helsing is now valued at $1.8 billion following its recent funding round, positioning it as Europe's best-funded defense technology startup. For Japanese taxpayers and the regional defense market, this indicates a shift in procurement toward overseas startups following Japan’s decision to ease arms-export rules and increase military spending. This policy change has attracted several international firms looking for local partners like Rakuten to enter the Japanese market.
A person in Japan would notice these changes through the continued field testing of these drones through September, which could lead to broader deployment of autonomous strike and surveillance systems across the country's defense branches. This sets a precedent for non-traditional defense companies, such as e-commerce giant Rakuten, acting as intermediaries for foreign technology. The next step in this process will be the conclusion of the HX-2 field tests at the end of September, which will likely determine the finalization of the purchase deal. Currently, the Ground Self-Defense Forces have not provided a formal response regarding the status of the tests.