German drone maker Helsing has enlisted Japanese e-commerce and finance firm Rakuten to help finalize a deal to sell its unmanned systems to Japan’s army, a spokesperson for Rakuten said on Monday. Japan’s Ground Self-Defense Force is currently testing Helsing’s HX-2 strike drone, as Tokyo looks to modernize its military and counter an increasingly assertive China. The field tests will run until the end of September, the spokesperson said.
Helsing struck an “initial agreement” for the Japanese government to use its systems earlier this year, a spokesperson for the Munich-based company said, adding that the move was made possible by an unnamed “local brokerage partner.” Japan’s Ground Self-Defense Force did not immediately respond to a request for comment. Rakuten’s involvement with Helsing was first reported by Japan’s Nikkei newspaper. While the Tokyo-based conglomerate has limited defense experience, it is aiming to help more startups break into Japan’s defense industry.
Startups often face significant structural barriers, including complex procurement systems, difficulties communicating with government agencies and challenging procurement cycles,” Hideaki Mukai, Chief of Staff to Rakuten’s CEO, said in a statement. Rakuten helped U.S.-listed Ukrainian drone software maker Swarmer organize a demonstration of its technology for a unit of Japan’s military earlier this year, it was previously reported. The late April test involved using its AI software to coordinate a swarm of drones in a seek-and-hit mission in Japan.
Rakuten’s billionaire founder Hiroshi “Mickey“ Mikitani has been among Japan’s most vocal supporters of Ukraine, and his firm has also helped other Ukrainian defense firms exhibit their products at arms fairs in Japan. Founded in 2021, Helsing initially focused on artificial intelligence software designed to help analyze battlefield data before expanding into autonomous strike drones, underwater surveillance systems and military aircraft applications. It has secured contracts with European governments and defense companies, while supplying drones for Ukraine backed by German government funding.
The Munich-based firm raised $1.8 billion in a funding round in July, cementing its position as the continent’s best-funded defense technology startup.
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