Friday, November 8, 2019

Alibaba to invest $3.3B to bump its stake in logistics unit Cainiao

Alibaba is doubling down on its logistics affiliate Cainiao, two years after acquiring a majority stake in the firm. The Chinese giant said today it would invest an additional 23.3 billion yuan (about $3.33 billion) to raise its equity in Cainiao to 63% from 51%.

Cainiao was co-founded by Alibaba in 2013 to bring organization in Chinese logistics, particularly around e-commerce deliveries. And it has delivered: Today Cainiao powers most of Alibaba’s logistics needs in the nation and elsewhere. Department store owner Intime Group, conglomerate Fosun Group, and a number of other logistics firms also own stakes in Cainiao.

In 2017, Alibaba said it was bumping its stake in Cainiao to 51% from 47%, and at the time committed to spend more than 100 billion yuan to expand the logistics business over five years.

More to follow…



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