China-based logistics service provider Best Logistics has raised $760m in a round backed by conglomerate Fosun and logistics firm Cainiao Network, Reuters reported yesterday.
Citic Private Equity, a subsidiary of Chinese government-owned investment holding company Citic Group, led the round, which included investment bank Goldman Sachs, asset management firm CDH Investments and the state-owned China Development Bank.
Founded in 2007, Best Logistics operates a range of services including delivery and warehousing through various subsidiaries and franchises, and owns around 400 operation centres in China as well as branches in the US and Germany.
The funding will be used by Best Logistics to strengthen its technology platform, expand globally and support the addition of financial services to its offering.
The round was initially reported by the Wall Street Journal in January this year, the WSJ placing the size of the round, which is reportedly being raised in advance of an initial public offering, at $700m.
International Finance Corporation, the private investment subsidiary of the World Bank, had reportedly considered investing $30m as part of the round but it does not appear to have been involved.
E-commerce group Alibaba, which is Cainiao’s largest shareholder, and manufacturing services provide Foxconn invested $15m in Best Logistics prior to 2009.
An IFC statement has indicated that Best’s past shareholders also include IDG Capital Partners, a venture capital affiliate of media firm International Data Group, as well as Goldman Sachs, CDH Investments, China Renaissance Capital Investment and Walden International.