by Apparel Resources News-Desk
18-November-2019 | 2 mins read
Alibaba Group is making additional investment of around US $ 3.3 billion increasing its equity stake in Cainiao Smart Logistic Network – An increase from approximately 51 per cent to almost 63 per cent.
The e-commerce pioneer initiated the move 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 showed strong support for Cainiao’s long-term outlook by participating in the fundraising.
Cainiao, a leader in technology driven logistic and infrastructure services, provides IoT (Internet of Things) and smart supply chain solutions in the sector. The solutions supported with intelligent algorithms and technologies help brands and retailers improve industry efficiency.
While stating more on the same, Daniel Zhang, Group Executive Chairman and CEO, Alibaba Group said “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.”
He also averred “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. We are committed to supporting its ongoing development, to realising greater synergies throughout the entire Alibaba Economy and accelerating digitisation of the logistics industry.”
With the additional resources, Cainiao will more actively participate in its investment in technology and logistic infrastructure service.
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