JD MRO, a subsidiary of JD.com that delivers industrial maintenance, repair and operations (MRO) products and services, has secured $230 million in a Series A round of financing led by global venture capital firm GGV Capital.
The round was joined by Sequoia Capital China and CPE.
The Series A round, which gave JD MRO a post-money valuation of over $2 billion, represents a 10.7 per cent equity interest on a fully diluted basis, JD.com announced in its first-quarter results.
The unit operates as an e-commerce platform for industrial MRO products and services targeted at corporate customers.
Chinese companies paid a combined 2.11 trillion yuan ($296.82 billion) for industrial MRO products in 2019, per a report from market researcher Qianzhan.com. The online penetration rate of the industry was about 3.69 per cent last year.
The sector is estimated to grow at a compound annual growth rate (CAGR) of 4.5 per cent between 2020 and 2025, shows the report, which translates into total transaction volumes of 2.75 trillion yuan ($386.83 billion) in 2025.
JD.com registered 146.2 billion yuan ($20.57 billion) in net revenues in the first quarter of 2020, up 20.7 per cent from the first quarter in 2019. Its net income stood at 1.1 billion yuan ($154.74 million), compared with 7.3 billion yuan ($1.03 billion) for the same period last year.
Its annual active customer accounts increased by 24.8 per cent to 387.4 million in the twelve months ended March 31, 2020. Mobile daily active users in March 2020 grew 46 per cent compared with March 2019.