Six people, one server and 13 merchants: how Rakuten built a Japanese internet conglomerate
Hiroshi Mikitani founded MDM, Inc., the company that became Rakuten, in February 1997 after leaving banking and deciding that the internet could give small merchants a better route to customers.
Rakuten Ichiba launched in May 1997 with six employees, one server and 13 merchants.
That starting point is useful context for understanding the modern Rakuten. The company did not arrive at its current position in one jump; it accumulated technology, customers and operating knowledge through a series of distinct transitions.
The marketplace let merchants keep their own identity
Rather than presenting every seller as anonymous inventory, Rakuten encouraged merchants to build distinctive storefronts and direct relationships with customers.
Cybersecurity markets change as applications, users and infrastructure move. The significance of this step was therefore not only the product itself, but the way it allowed the company to follow customers into a broader threat environment.
The 2000 IPO funded a rapidly expanding ecosystem
Rakuten went public in Japan and used acquisitions to move into travel, finance, digital content and other internet services.
For Rakuten, access to public markets was more than a branding milestone. It increased financial transparency and created another route to fund expansion, acquisitions or long-term product development.
Rakuten Points linked separate businesses through loyalty
A shared rewards programme encouraged customers to move between commerce, cards, banking, travel and other services.
Marketplace businesses become stronger when buyers, sellers and supporting services reinforce one another. This step gave Rakuten another way to deepen that network rather than relying on a single transaction type.
International acquisitions carried the brand outside Japan
Deals involving businesses such as Kobo, Viber and Ebates expanded Rakuten’s reach into e-books, messaging and cashback commerce.
Marketplace businesses become stronger when buyers, sellers and supporting services reinforce one another. This step gave Rakuten another way to deepen that network rather than relying on a single transaction type.
Mobile networking became the most capital-intensive bet
Rakuten entered Japan’s mobile-carrier market and built a software-heavy network architecture, extending the group from internet services into telecommunications infrastructure.
Mobile technology rewarded companies that could scale rapidly while adapting to new standards and device requirements. For Rakuten, the milestone widened the role it could play as connectivity became a default feature of everyday computing.
Why the marketplace became an ecosystem — and then a network operator
As of 18 September 2026, rakuten Group now spans e-commerce, fintech, digital content and mobile communications, with Mikitani still serving as chairman and chief executive.
For readers following the brand today, the history explains why newer announcements often connect back to technology or business decisions made much earlier.
For TechnologyBlog.co.za, this page is intended to serve as the company-history cornerstone for future Rakuten coverage, so product and company-news articles can link back to one factual brand background instead of repeating the full origin story.
Primary sources reviewed include Rakuten Group’s official company history and 2025 annual report. Official company identity cross-checked against http://global.rakuten.com/corp.