The logistics division of JD.com, Alibaba’s closest e-commerce competitor in China, has raised 1.5 billion yuan (about $218 million) to spend money on logistics-related corporations and expertise. Restricted companions within the new fund embrace JD Logistics and JD.com, in addition to undisclosed listed corporations and government-led funds, reported Reuters.
JD Logistics, which turned a standalone subsidiary in April 2017, has loads to show. The unit raised $2.5 billion final yr from Hillhouse Capital Group, Sequoia Capital and Tencent, amongst different buyers, in its first main exterior funding at a valuation of about $13.5 billion and can be eyeing a possible public providing.
However two months in the past, JD.com CEO Richard Liu mentioned in an inner memo that JD Logistics would enact a number of cost-cutting measures after shedding 2.eight billion yuan (about $420 million) final yr. These embrace eliminating a primary wage for its couriers and as a substitute pay them primarily based on what number of packages they ship. JD.com owns a 81.four % stake within the enterprise.
JD Logistics opponents embrace Alibaba’s Cainiao, which raised undisclosed funding at a reported valuation of $7.7 billion in 2016. Guaranteeing speedy, cost-efficient deliveries is particularly necessary to JD.com’s enterprise as a result of it carries its personal stock and performs each in-house logistics and repair for third events.
TechCrunch has reached out to JD.com to ask about doable investments. JD Logistics has targeted on testing drone deliveries, furthering logistics automation and sensible automobiles and backed a number of corporations in Southeast Asia.