Published 15 February 2018
Chinese e-commerce firm JD.com has raised about $2.5bn by divesting a stake in its logistics business.
The company signed agreements for the financing for JD Logistics with investors such as Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, China Life, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International.
Subject to customary closing conditions, the deal is expected to complete in the first quarter of this year.
Once the deal concludes, the e-commerce firm will hold 81.4% stake in JD Logistics.
The e-commerce firm will use the funding to expand its capabilities by investing in areas such as automation, drones and robotics.
In April 2017, JD.com established new logistics firm to offer advanced supply chain and logistics services to businesses across a wide range of industries.
JD Logistics offers warehousing, transportation, delivery, after-sales service, in addition to logistics services such as smart and cross-border logistics.
JD.com chairman and CEO Richard Liu said: “Our decision early on to build out our own logistics network has paved the way for JD Logistics to become the industry leader it is today.”
JD Logistics CEO Zhenhui Wang said: “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.”
JD.com manages six logistics networks, comprising normal-sized items, bulky items, cold chain, B2B, cross-border and crowd-sourced.
Image: JD.com’s refrigerated trucks. Photo: courtesy of JD.com, Inc.
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