Rakuten, a Japanese internet conglomerate, plans to invest over US$100 million in India in 2025 and expand its workforce by 8%, according to Sunil Gopinath, CEO of Rakuten India.

The company aims to enhance its technology and infrastructure, focusing on integrating AI into its operations, including business tools and customer experiences.

Rakuten currently employs 4,000 people in India, 90% of whom are technology professionals, and plans to hire more AI-skilled workers.

Rakuten’s Global Capability Centre (GCC) in India plays a key role in developing products like Rakuten Pay and the SixthSense platform, which predicts system issues. The platform serves clients in banking, healthcare, aviation, and government.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ India’s GCCs evolve from cost-saving hubs to innovation centers

Rakuten’s substantial $100 million investment in India reflects a broader industry transformation where Global Capability Centers (GCCs) have evolved beyond traditional support functions into strategic innovation hubs.

India’s GCC sector currently employs approximately 1.6 million people and is projected to grow from $64.6 billion in 2024 to $105 billion by 2030, demonstrating the increasing value these centers provide to global operations 1.

Rakuten’s India center already handles approximately 50% of the company’s 70+ businesses globally, showing how deeply integrated these operations have become to core business functions rather than just support services.

The development of Rakuten’s SixthSense platform, which predicts system issues before they occur, demonstrates how GCCs are now creating high-value intellectual property that drives global competitive advantage.

This shift is further evidenced by Rakuten’s focus on hiring AI-savvy talent in India, with 90% of its 4,000 Indian employees already in technical roles, positioning the center as a critical driver of the company’s global AI strategy.

2️⃣ Strategic AI implementation delivers measurable financial returns

Rakuten’s investment approach demonstrates how companies are moving beyond experimental AI to implementations that deliver concrete business results and quantifiable returns.

The company generated ¥10.5 billion ($73.62 million) in profit in fiscal year 2024 through AI implementation, with specific efficiency gains including nearly halving the time required to create sales materials 2.

Their experience aligns with industry research showing AI tools can increase productivity by up to 40% in certain business functions, allowing employees to focus on more strategic initiatives 3.

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