BEIJING (Reuters) – JD.com Inc said on Wednesday it had raised $2.5 billion for its logistics arm, as the second-largest Chinese e-commerce firm seeks to further bolster its position in online retail in its home country and beyond.
JD Logistics was valued at $10.9 billion prior to the new funding, which was led by Hillhouse Capital, Sequoia China, China Merchants Group and Tencent among others, the company said in a statement.
Reuters reported last month that the company kicked off a fundraising round with a target of at least $2 billion for the logistics unit, and eventually plans to list the business overseas.
“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,” said Richard Liu, chairman and CEO of JD.com.
After the completion of this transaction, JD.com will remain the majority shareholder of JD Logistics with an 81.4 percent stake. The financing is expected to close in the first quarter of 2018.
Last year, JD.com invested in logistics infrastructure in Southeast Asia, expanding from existing presence in Indonesia. It also inked a partnership with Japanese delivery firm Yamato Holdings in December to ship products from Japanese retailers to China.
Reporting by Pei Li and Adam Jourdan; Editing by Gopakumar Warrier