Rakuten to Invest $100 Million in India, Boost AI-Driven Operations

Rakuten's Ambitious Investment in India

Japanese internet conglomerate Rakuten has announced plans to invest at least $100 million in India this year, signaling a significant boost to its global operations. The company aims to scale up its technology, infrastructure, and workforce in the country, with a particular focus on artificial intelligence (AI) capabilities 1

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Expanding Workforce and AI Focus

Rakuten currently employs 4,000 people in India, with 90% of them being tech staff. The company plans to increase its headcount by 8% in 2025, specifically targeting individuals they consider "power users" of AI. Sunil Gopinath, Rakuten's India CEO, emphasized the company's strategy, stating, "We look for AI-savvy people that we can intersperse across the company" 1

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Key Contributions from India's Global Capability Centre

The India Global Capability Centre (GCC) plays a crucial role in Rakuten's global operations, contributing to about 50% of the company's 70-plus businesses. Notable projects include:

1. Rakuten Pay: A major payment app in Japan
2. SixthSense platform: An AI-driven system for tracking and predicting issues

Gopinath likened the SixthSense platform to Sherlock Holmes, highlighting its ability to not only identify problems automatically but also predict potential issues before they occur 1

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AI-Driven Profitability and Efficiency

Rakuten's investment in AI has already shown promising results:

• Generated a profit of 10.5 billion yen ($73.62 million) in fiscal year 2024 through AI utilization
• Aims to double this profit in 2025
• Employees reduced time to create sales material by almost half in the previous year 1

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India's Growing Importance in Global Capability Centres

The market size of India's GCCs is projected to grow significantly:

• Expected to reach up to $105 billion by fiscal year 2030
• Current valuation at $64.6 billion in 2024

This forecast, according to a report by IT industry body Nasscom and consulting firm Zinnov, underscores India's increasing importance in global tech operations 1

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Rakuten's Diverse Operations and AI Integration

Rakuten operates across various sectors, including fintech, e-commerce, and telecom. The company is leveraging AI to enhance operations in key areas such as:

1. Business tools
2. Customer experience
3. Employee productivity

The SixthSense platform, developed with significant contributions from the India GCC, serves a wide range of clients, including banks, healthcare companies, airlines, and even the government of India 1

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Strategic Locations in India

Rakuten's India GCC has established a strong presence in the country, with offices in multiple locations. This includes two centers in Bengaluru, a major tech hub in southern India, further solidifying its commitment to the Indian market and talent pool 1

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