China's JD.com announces financing pacts for JD Logistics

21 Feb '18

1 min read

China’s largest retailer JD.com Inc recently announced it has entered into definitive agreements for the financing for its logistics subsidiary, JD Logistics, with investors, including Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, China Life and China Structural Reform Fund. The amount raised in this round is likely to be $2.5 billion.

After this transaction is over, JD.com will be the majority shareholder of JD Logistics with 81.4 per cent stake. The financing is likely to close in the first quarter of 2018, according to a company press release.

“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,” said JD Logistics CEO Zhenhui Wang.

JD.com has been operating its self-owned logistics system since 2007, and established JD Logistics as a stand-alone subsidiary in April 2017.

JD.com is the only company in the world that owns and operates six major logistics networks, including normal-sized items, bulky items, cold chain, B2B, cross-border and crowd-sourced (New Dada), covering over 99 per cent of China’s population. (DS)

Fibre2Fashion News Desk – India

More Textiles News - China...