Alibaba increases stake in Cainiao Smart Logistics Network
Alibaba has invested an additional RMB23.3 billion (US$3.3 billion) to increase its equity stake in Cainiao Smart Logistics Network from approximately 51 per cent to about 63 per cent.
The investment was made by subscribing for newly issued Cainiao ordinary shares in its latest financing round and purchasing some equity interest from an existing Cainiao shareholder. Other existing shareholders also participated in the fundraising.
“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,” said Alibaba Group executive chairman and CEO Daniel Zhang.
“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.”
With more financial resources, Cainiao will be able 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, the company said.