JD.com’s industrial MRO unit secures $230m in GGV Capital-led round

JD.com Inc. headquarters in Beijing. Photographer: Qilai Shen/Bloomberg

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.

JD MRO is the fourth JD unit to become a unicorn, after JD Digits, JD Logistics, and JD Health.

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.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.