Alibaba has announced it has invested $3.3bn to increase its equity stake in Cainiao Smart Logistics Network Limited (Cainiao). This investment has increased Alibaba’s stake from approximately 51% to around 63% by subscribing for newly issued Cainiao ordinary shares in its latest financing round and purchasing certain equity interest from an existing Cainiao shareholder. Other existing shareholders also participated in the fundraising.
With more financial resources, Cainiao is set to continue its investment in technologies and logistics infrastructure services to strengthen its smart logistics network and improve technological capabilities for the industry.
“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. 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,” said Daniel Zhang, Alibaba Group Executive Chairman and Chief Executive Officer.
Cainiao has introduced IoT (Internet of Things) and smart supply chain solutions, along with algorithms and technologies to improve industry efficiency. It has also developed international and cross-border fulfillment solutions to facilitate Alibaba’s international e-commerce business, including Tmall Global, AliExpress and Lazada.
Source: Alibaba
