China e-commerce giant Alibaba is investing S$312.5 million (US$249 million) to take a 10.35 per cent stake in SingPost.

As the national postal service provider in Singapore for over 150 years, SingPost offers integrated communications through its domestic and international postal services and digital solutions for businesses and consumers. SingPost’s e-commerce and related businesses currently account for about 26 per cent of its total revenue.

The cooperation will tap into other e-commerce opportunities in Southeast Asia and beyond by providing greater access to SingPost’s international logistics capabilities, infrastructure and delivery networks, and as well as end-to-end solutions to Alibaba Group customers and merchants.

“This landmark collaboration leverages the core competencies of both companies to advance the e-commerce eco-system and create logistics solutions for international e-commerce,” said SingPost in a statement.

Alibaba is the second largest shareholder in SingPost after Singapore Telecommunications which owns 25 per cent. 

“Through this collaboration, we hope to create concrete benefits for our overseas buyers and sellers by enhancing the user experience and providing greater access to a suite of international e-commerce logistics solutions and products,” said Alibaba Group COO Daniel Zhang.