News: JD.com Raises Funding by Selling Stakes in JD Logistics

March 12, 2018

China's ecommerce giant JD.com is expecting to raise $2.5 billion early this year for JD Logistics by selling stakes in the logistics subsidiary. The deal will allow JD.com to invest more in the technologies transforming the ecommerce market, like automation, drones and robotics.

 

JD.com has entered into agreements with Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, China Life and other investment firms. After this round of funding, JD.com will still remain the majority shareholder of JD Logistics, with an 81.4% stake.

 

Since 2007, JD.com has been operating its own logistics system and established JD Logistics as a stand-alone subsidiary in April 2017. JD.com currently owns and operates six major logistics networks, covering over 99% of China's population.

 

According to a Bloomberg article, JD.com is expected to deliver its first annual profit since listing and is looking to take its model to foreign markets from Southeast Asia to Europe and the U.S. Publicly released data shows that JD.com currently has 405 warehouses covering nine million square meters across China. The company also plans to open more cold chain warehouses capable of delivering fresh produce and drone airports capable of flying orders to remote locations.

 

JD.com is China's second largest online shopping platform, after Alibaba. Alibaba relies on third-party providers to handle logistics. In contrast, JD.com has taken a riskier route by creating one of China's most extensive networks of fulfillment centers and delivery fleets.

 

The deal is expected to be completed within this quarter.

To read more, please see: JD.com to Raise $2.5 Billion by Selling Stake in its Logistic Business.

Further Resources on Global Business

 

Globalization Partners International (GPI) has extensive experience localizing marketing materials, technical documents, and large, scalable websites. We have previously posted a number of useful guides for best practices in this area. Feel free to review our blogs that are particularly relevant:

 

 

Please feel free to contact GPI at info@globalizationpartners.com with any questions about our language and technology services. Also let us know if you have any interesting blog topics you would like us to cover in our future blogs. You may request a complimentary Translation Quote for your projects.

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Country Specific
Tags:
JD.com, chinese ecommerce, global ecommerce, JD Logistics, China

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Peter has over 20 years’ experience in business development within the localization industry supporting clients for documentation, software and website globalization services. He started his career in the translation industry in 1995 and over the years has worked for several leading localization service providers including LMI, Berlitz, Welocalize, GPI and Beyondsoft. Throughout his career Peter has led by example and always put his clients’ needs first to ensure client expectations are understood and successfully met. Over the years Peter has trained extensively in Solution Selling, Action Selling and Localization Sales, Testing and Project Management. Peter handles many of GPI’s global accounts helping educate clients on GPI’s comprehensive suite of globalization services and industry best practices.