Shanghai Yunxin Venture Capital Co, a unit of Alibaba’s payment arm Ant Financial Services, has agreed to invest Rmb200 million ($32 million) for a 20-percent stake in smart parking operator Shenzhen Shunyitong Information Technology Co., according to a Yicai Global report.
The investment values Shunyintong, which was founded in 2007, at Rmb1 billion ($158 million).
Shenzhen Shunyitong is a unit of Shenzhen Jieshun Science and Technology Industry Co, a Shenzhen-listed provider of access control and car parking management systems in China, established in 1992.
Shanghai Yunxin Venture Capital signed the investment agreement with Shenzhen Jieshun recently, giving Alibaba wider access to the country’s smart parking sector, which compliments its online and offline retail businesses.
According to a China Money Network report, Shenzhen Jieshun will utilize the fresh investment to expand its smart parking operations throughout China. Its smart parking services help drivers find nearby car parks, pay parking fees using their mobile phones, and get discounted rates.
Last year, Shenzhen Jieshun posted a profit of Rmb1.9 million on Rmb50 million revenue.
DEALSTREETASIA will update this news as soon as we get official statements from the companies involved in the deal.