China-based retail group Suning has spun off e-commerce services subsidiary Yunwang Wandian with RMB6bn ($913m) in funding, Tech in Asia has reported, citing a stock exchange filing on Tuesday.
The capital came from Shenzhen Capital Group, SenseRobot Management, Ningbo Xianshi Enterprise Management and Central China Asset Management, a subsidiary of investment bank Central China International. It valued the spinoff at about $3.8bn.
Suning operates a chain of roughly 1,600 stores across China selling consumer electronics and home appliances. It is also an occasional corporate venturer, with a portfolio including artificial intelligence technology producer SenseTime and online fresh food retailer Yiguo.
Yunwang Wandian brings together a range of Suning’s online and e-commerce-focused business activities. It was launched during Singles Day last month, a national shopping day somewhat analogous to Black Friday in the west.
The company will function as Suning’s e-commerce outlet, in addition to providing supply chain, last-mile delivery and after-sales services to online merchants and the product suppliers who serve them.
The funding will be used to build out Yunwang Wandian’s operations as well as on customer acquisition and research and development activities.
