JD Logistics, the logistics services provider spun off by China-based e-commerce group JD.com, raised RMB1.5bn ($218m) yesterday for a strategic investment fund, Reuters reported.
JD Logistics and JD.com itself are among the limited partners for the fund, along with several undisclosed public companies and government-led funds, according to Chinese news source Jiemian.
The vehicle will focus on the logistics sector and will complement JD.com’s existing investment team, which has a remit to invest in a wider array of industries.
The entity also adds to a fund launched by JD.com’s property management arm in partnership with Singapore’s sovereign wealth fund, GIC, which had secured $698m as of February this year, according to a regulatory filing.
JD Logistics was spun off in 2017, when it began offering its delivery and warehousing services to external clients.
The company was reportedly looking to raise at least $2bn in a funding round co-led by Sequoia and Hillhouse Capital in January 2018, but has not provided an update. It has yet to turn a profit, suffering from a $407m loss in 2018.
