Rakuten Raises $2B to Take on Amazon in Japan/Asia

Japanese e-commerce company Rakuten, a Digital Commerce Alliance (DCA) member, raised $2.1 billion by selling new shares of stock. Rakuten’s chairman, Hiroshi Mikitani, invested another $92 million. Funding will be used to fend off Amazon, the number one online retailer in Japan.

To raise funds, shares were sold to companies that will help Rakuten take Amazon on: Japan Post’s post offices and delivery network will make logistics stronger; Tencent’s digital payments expertise will strengthen fin-tech capabilities; and Walmart’s online grocery experience will shore up Rakuten’s food line of business. This move will continue to boost the price of Rakuten’s stock.