JD.com announces financing agreements for JD Logistics
China’s largest retailer and e-commerce company JD.com on February 14 announced the arrangement of financing agreements with investors for its logistics subsidiary JD Logistics.
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. The total amount raised in this round is expected to be about US$2.5 billion.
Following the completion of this transaction, JD.com 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.
JD.com chairman and CEO Richard Liu says the current funding round sets the stage for the company to further invest in expanding its lead in the sector in areas such as 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,” he adds.
JD Logistics CEO Zhenhui Wang points out the financing will enable the company 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,” he says.
JD.com has been operating its self-owned logistics system since 2007 and established JD Logistics as a standalone subsidiary in April 2017.
JD Logistics provides business partners with comprehensive supply chain solutions, including warehousing, transportation, delivery, after-sales service, as well as logistics services, including smart and cross-border logistics, among others.
14 Feb 2018