New funding to boost JD.com’s logistics arm
14 / 02 / 2018
Chinese e-tailer JD.com has signed an agreement with a number of investors to take a minority stake in its JD Logistics network.
JD.com will remain the majority shareholder with an 81.4% shareholding in its logistics arm when the deal, which is expected to raise about $2.5bn, closes in the first quarter of 2018.
The investors include Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, China Life, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International.
JD.com chairman and chief executive, Richard Liu, said: "Our decision early on to build our own logistics network has paved the way for JD Logistics to become the industry leader. The shift throughout global e-commerce towards our model is vindication of the path we chose.”
JD.com has operated its self-owned logistics system since 2007, establishing JD Logistics as a stand-alone subsidiary in April 2017. It operates six major logistics networks - for regular-sized items, bulky goods, cold chain, B2B, cross-border and crowd-sourced, covering over 99% of China's population.
Liu said the funding would allow further investment in areas such as automation, drones and robotics.
JD Logistics chief executive, Zhenhui Wang, added: "Over the decade that we have built out our operations, initially to support our own e-commerce business, we have created the most efficient, integrated and user-friendly logistics network in China. This financing will enable JD Logistics to further enhance its smart supply chain network with openness and integration.”
He said it would speed up collaborative efforts with industry partners, “and build China's next-generation commercial infrastructure ecosystem”.
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