How JD.com broke logistics fundraising record

The e-commerce giant’s decision to carve out its own space in the booming logistics sector pays off as big-name investors pile in. It will spend big on automation, exploiting robotics, drone delivery.

JD.com, a major US-listed e-commerce rival to Alibaba Group in China, announced a fresh round of fundraising for its logistics unit, JD Logistics, on Wednesday smashing the funding record for the red-hot sector.

The investment, expected to total approximately $2.5 billion, comes from a group of big-name investors including Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, China Life, China Development Bank Capital FOF, state-backed China Structural Reform Fund and ICBC International. And JD.com will remain the majority shareholder of the business, with an 81.4% stake after the deal, which is expected to close in the first quarter.

The fundraising,...

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