JD.com’s logistics unit raises $218m investment fund

Photo: Reuters

Chinese e-commerce giant JD.com’s logistics division has raised a 1.5 billion yuan ($218 million) fund to invest in companies and technologies specializing in logistics, the company said on Monday.

The fund’s limited partners will include JD Logistics and the JD.com mother company, in addition to “several listed companies and government-led funds,” the company said, declining to elaborate.

The fund will complement JD.com’s own investment team which carries out deals across a variety of sectors. Chinese news website Jiemian first reported the fundraising on Monday.

JD.com’s property management division also has a fund, established in February 2019, to invest in warehousing facilities. The fund was established with GIC, Singapore’s sovereign wealth fund, and by February 2019 had committed capital of 4.8 billion yuan ($698 million), a filing showed.

JD.com spun off its logistics unit into a standalone entity in 2017, and then opened up its delivery and warehousing services to third-party companies.

In 2018 the division said it was raising $2.5 billion from backers including Hillhouse Capital Group and Sequoia Capital.

However, the unit remains a loss-maker for JD.com. Earlier this year, JD.com CEO Richard Liu told employees in an internal letter that the division racked up losses of 2.8 billion yuan in 2018. The company also adjusted its compensation for couriers, moving payments from a flat salary to a per-delivery scheme.

At a press roundtable in June, Bing Fu, head of planning and development of JD Logistics, said an IPO was a possibility for the unit but that it had no clear timeline in mind.

Reuters

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.

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.