E-commerce firm Alibaba committed $206m to Singapore-based mail, logistics and e-commerce service provider Singapore Post (SingPost) and a reported $100m in China-based flash sales platform Mei.com today.
Alibaba paid $138m to increase its stake in publicly-listed SingPost from 10.2% to 14.5% following its $249m investment in the firm in May 2014.
The company also agreed to pay up to $67.9m for a 34% stake in Quantium Solutions International (QSI), SingPost’s end-to-end e-commerce logistics and fulfilment subsidiary.
QSI, formed in 2001 as a joint venture between SingPost and fellow delivery companies TNT and Royal Mail before SingPost wholly acquired the service in 2009, operates in 10 Asia Pacific countries.
QSI will become a SingPost and Alibaba JV through the deal, in the process expanding its e-commerce logistics infrastructure and services, and giving Alibaba a chance to upgrade its own e-commerce infrastructure outside China.
Daniel Zhang, CEO of Alibaba Group, said: “Over the past year, Alibaba and SingPost have worked closely to explore cross border e-commerce opportunities and created a series of customised logistics solutions in various markets.
“This additional investment into SingPost and establishment of a joint venture signify our commitment in expanding our global logistics footprint, which in turn will help Chinese businesses sell, and global brands deliver more easily around the world”
Alibaba has also invested an undisclosed sum in online flash sales company Mei.com which “reliable sources close to the deal” told TechCrunch was more than $100m.
Mei operates a flash sales platform for luxury and fashion products, selling goods to Chinese customers through rapid discounted sales. Its range of products is intended to complement the affordable luxury goods available at Alibaba subsidiary Tmall.
Alibaba’s involvement as a shareholder will enable Mei to upgrade its supply chain services, gaining assistance from Tmall, which will form a specialised services team to help the smaller company.
– Photo courtesy of Alibaba Group