Japan’s Mizuho Financial Group is reportedly set to inject $600 million into Rakuten Group’s securities division, according to a person familiar with the matter. This move is intended to help the e-commerce giant’s finances, which have been suffering lately.
The investment would raise Mizuho’s stake in Rakuten Securities to nearly 50%, from its current level of under 20%. Both Mizuho and Rakuten Group have declined to comment on the matter, as the plans have not been made public yet.
Rakuten Group has been in the red for four years now, with its mobile network arm failing to make any headway in the market. The company’s initial public offering (IPO) of its securities unit has been delayed to next year due to difficulty in achieving the desired valuation.
Mizuho’s partnership with Rakuten Securities will help it tap into the latter’s online brokerage expertise and its younger client base, at a time when traditional face-to-face brokerage services are facing stiff competition.