Alibaba raises stake in its logistic unit Cainiao with investment of US$3.3b
CHINA's Alibaba Group Holdings has raised its stake in its logistics unit Cainiao to 63 per cent with a US$3
CHINA's Alibaba Group Holdings has raised its stake in its logistics unit Cainiao to 63 per cent with a US$3.3 billion investment just ahead of another record Singles' Day shopping bonanza that generated sales of US$38.4 billion on Alibaba's platforms.
Other existing shareholders also participated in the fundraising, demonstrating 'strong support for Cainiao's long term outlook', the e-commerce giant was quoted as saying in a report by London's Air Cargo News.
The finance will allow the logistics company to continue its investment 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.'
Alibaba group chief executive Daniel Zhang said: '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.
'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. We are committed to supporting its ongoing development, to realising greater synergies throughout the entire Alibaba economy and accelerating digitisation of the logistics industry.'
In a related development, Alibaba said that sales through its payment platform on this year's Singles' Day on November 11 rose by 26 per cent year on year, sealing its position as the world's largest shopping event.
Cainiao Network, Alibaba's logistics data platform operator, processed 1.3 billion delivery orders and the top five countries selling to China through its cross-border platforms were Japan, US, South Korea, Australia and Germany.