TOKYO (Reuters) – Rakuten Group plans to merge its fintech businesses into one group, the company said on Monday, to strengthen collaboration and attract customers in areas ranging from online banking and credit cards to securities and insurance.
Rakuten Group and Rakuten Bank have entered into a memorandum of understanding on the reorganization, which will take effect in October, the companies said in statements.
They added that Rakuten Bank will continue to be listed on the Tokyo Exchange after integration.
The parent company’s finances, centered on e-commerce platform Rakuten Ichiba, have suffered since the mobile operator launched in 2020, resulting in 14 straight quarters of operating losses.
To raise cash, Rakuten issued shares and debt and sold off assets, such as listing Rakuten Bank in April 2023.
The company also applied to list its securities unit in July 2023, but that was delayed the following November when Rakuten instead sold a 30% stake to Mizuho Financial Group.
Rakuten will consider delisting from Rakuten Securities after the reorganization, the group said.