Briefing: JD Logistics raises $218 million to invest in startups
Jun 25, 2019
Logistics unit of JD raises 1.5 billion yuan investment fund – The Guardian
What happened: JD Logistics, the logistics arm of Chinese e-commerce giant JD.com, announced Monday it had raised $218 million in a RMB-dominated industrial fund. JD Logistics and parent company JD.com will be limited partners of the fund with participation from several listed companies, government-led funds, reputable Fund of Funds, and asset management platforms, according to the company. It said that it will focus on investment in early and growth-stage startups in the supply chain, asset management, finance, technology, and intelligent manufacturing sectors.
Why it’s important: Logistics is a core business initiative for JD.com, but its logistics unit is still loss-making. The new fund will complement JD.com’s other fund established in February, which is focused on warehousing facilities. JD.com and GIC, Singapore’s sovereign wealth fund, invested RMB 4.8 billion in the warehouse fund. Chinese tech giants commonly use investment to expand their business empires. Baidu, Alibaba, and Tencent, or BAT as they are commonly referred to, are all assiduous dealmakers. More than half of China’s unicorns are either founded or invested by BAT, and more than 90% of Chinese companies with a market cap of $5 billion or more are linked to at least one company in the trio, according to data from investment information site Ctoutiao.