China’s largest retailer, JD.com, has raised around $2.5bn in financing for its logistics subsidiary, JD Logistics.
Investors include Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, China Life, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International.
After the completion of this transaction, JD.com, which is valued at $10.9bn, will remain the majority shareholder of JD Logistics with an 81.4% stake. The financing is expected to close in the first quarter of 2018, subject to customary closing conditions.
Richard Liu, Chairman and CEO of JD.com, said the company’s decision to establish its own logistics network had resulted in JD Logistics becoming an industry leader.
“The shift throughout global e-commerce towards our model is vindication of the path we chose,” he commented.
“This current funding round sets the stage for us to further invest in expanding our lead in the sector in areas like automation, drones and robotics. JD Logistics will continue to support both JD.com’s e-commerce business and the logistical needs for a wide range of industries for years to come.”
Zhenhui Wang, CEO of JD Logistics, 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. It is a major step, which will speed up our collaborative efforts with leading industry partners and build China’s next-generation commercial infrastructure ecosystem.”
JD.com has been operating its self-owned logistics system since 2007, and established JD Logistics as a stand-alone subsidiary in April 2017.