JD Logistics, the logistics spinoff of China-based e-commerce firm JD.com, agreed funding today from investors including internet group Tencent and insurer China Life for a round expected to close at about $2.5bn.
The round also includes Hillhouse Capital, Sequoia China, China Merchants Group, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International as well as undisclosed additional participants.
JD Logistics was formed by its parent company in April 2017 out of a logistics operation it had already been running for a decade. It has seven fulfilment centres and more than 400 warehouses, which it claims represents the largest fulfilment infrastructure of any China-based e-commerce firm.
The company’s services cover the delivery of both normal-sized and bulky items in addition to cold chain logistics, business-to-business items, cross-border delivery and a crowdsourced service.
The round is expected to close by the end of next month. JD.com will retain an 81.4% stake once it has been completed, indicating that JD Logistics is valued at just over $12.8bn.
Richard Liu, JD.com’s chairman and CEO, said: “Our decision early on to build out our own logistics network has paved the way for JD Logistics to become the industry leader it is today. The shift throughout global e-commerce towards our model is vindication of the path we chose.
“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. JD Logistics will continue to support both JD.com’s e-commerce business and the logistical needs for a wide range of industries for years to come.”
JD Logistics CEO Zhenhui Wang added: “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.”