In 2020, Rakuten (4755.T) entered Japan’s phone market by launching a mobile service to compete. Although it had some success, this move greatly affected its finances. Rakuten Mobile faced challenges that led to financial problems. Their plan to create an affordable network with cloud-based software and inexpensive tools encountered difficulties, causing higher costs, network issues, and damage to their reputation because they hurried things.

As a result, Rakuten’s main company lost about $5.5 billion 13 times. They also need to pay $5.4 billion in two years. Rakuten wants its phone part to make as much money as it spends by 2024, but it is hard because other companies have very low prices. Nevertheless, Rakuten is working hard to solve money problems and keep moving forward. Its strength comes from successful online stores that compete with Amazon Japan and profitable financial services. To deal with money troubles, Rakuten has taken steps since 2021, like selling parts of the business and making its bank public, making around $5.4 billion. Experts think Rakuten might also make its card public next because it helps attract customers to their services.