$2.5bn funding round for JD Logistics
JD.com has entered into definitive agreements with a range of bankers and investors for the financing for its logistics subsidiary, JD Logistics.
In a statement issued today (14 February), JD.com said that the funding round is expected to raise about $2.5bn, and the investors include Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, China Life, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International, among others.
After the completion of this transaction, JD.com will remain the majority shareholder of JD Logistics with an 81.4% stake. The financing is expected to close in the first quarter of 2018.
Richard Liu, Chairman and CEO of JD.com, 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.com has been operating its self-owned logistics system since 2007, and established JD Logistics as a stand-alone subsidiary in April 2017. JD.com operates seven fulfilment centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees.