Chinese online retailer JD.com raises US$2.5 bln for logistics arm

JD.com Inc said on Wednesday that it had raised 2.5 billion US dollars for its logistics arm, as the second-largest Chinese e-commerce firm seeks to further bolster its position in online retail in its home country and beyond.

JD Logistics was valued at 10.9 billion US dollars prior to the new funding, which was led by Hillhouse Capital, Sequoia China, China Merchants Group and Tencent among others, the company said in a statement.

JD's unmanned logistics center in Kunshan, Jiangsu Province.

Reuters reported last month that the company kicked off a fundraising round with a target of at least 2 billion US dollars for the logistics unit, and eventually plans to list the business overseas.

“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,” said Richard Liu, chairman and CEO of JD.com.

After the completion of this transaction, JD.com will remain the majority shareholder of JD Logistics with an 81.4-percent stake. The financing is expected to close in the first quarter of 2018.

Last year, JD.com invested in logistics infrastructure in Southeast Asia, expanding from existing presence in Indonesia. It also inked a partnership with Japanese delivery firm Yamato Holdings in December to ship products from Japanese retailers to China.

(REUTERS)