Chinese eCommerce giant JD.com (Jingdong Group), Alibaba’s biggest rival, has raised 1.5bn yuan ($218m) to invest in companies and technologies which focus on logistics.
Limited partners in the fund include JD Logistics and JD.com itself, as well as ‘several’ other undisclosed companies and government-led funds, according to Reuters, as first reported by Chinese news website Jiemian.
JD.com setup an internet of things (IoT) and eCommerce logistics lab alongside Zebra Technologies, a manufacturer of marking, tracking, and computer printing technologies, and IT service provider Digital China back in March 2017. A month later, JD Logistics became a standalone subsidiary, eventually raising $2.5bn from Hillhouse Capital Group, Sequoia Capital, Tencent, and others.
However, the logistics division lost 2.8bn yuan in 2018 and, as a result, had to begin cutting costs a few months ago.
The eCommerce firm’s property management division also has a fund, which was established earlier this year to invest in warehousing facilities. The fund was setup with GIC, Singapore’s sovereign wealth fund, and is home to capital of 4.8bn yuan.