Alibaba invests an additional US$3.3 billion in its logistics arm Cainiao, raising stake to 63 pct
- Cainiao will use the money raised to invest in technologies and logistics infrastructure services
Chinese e-commerce giant Alibaba Group Holding has invested an additional 23.3 billion yuan (US$3.3 billion) to increase its stake in Cainiao Smart Logistics Network, as the company gears up for the coming Singles’ Day shopping spree.
Alibaba increased its equity stake in Cainiao from around 51 per cent to around 63 per cent by subscribing to newly issued Cainiao ordinary shares in its latest financing round and purchasing certain equity interests from an existing Cainiao shareholder, according to a company statement on Friday.
“Logistics is a key pillar of the Alibaba Business Operating System. It allows us to offer the best service to customers and to effectively advance our New Retail strategy,” said Daniel Zhang, Alibaba Group executive chairman and chief executive. “Cainiao strives to enhance service and user experience for merchants and consumers through superior technology and digital solutions, both within China and around the world.”
Founded in May 2013 by Alibaba in partnership with a consortium of companies, Cainiao will use the money raised to invest in technologies and logistics infrastructure services to strengthen its smart logistics network and enable innovations in business models, services and technological capabilities for the entire industry.
As the logistics arm of Alibaba, Cainiao also offers solutions to Alibaba’s international e-commerce business, including Tmall Global, AliExpress and Lazada.