PHOTO FILE: A sign of China's eCommerce company JD.com is featured at CES (Consumer Electronics Show) in Asia 2016 in Shanghai, China, May 12, 2016. REUTERS / Aly Song / File Photo
SHANGHAI (Reuters) – A logistics division of the Chinese e-commerce, JD.com, has raised 1.5 billion yuan ($ 218 million) fund to invest in companies and technologies specializing in logistics, the company said God Monday.
The fund's limited partners will include JD Logistics and parent company JD.com, as well as “a number of listed companies and government-led funds,” the company said.
The fund will complement the JD.com investment team itself which deals across different sectors. Chinese news website Jiemian first reported on the fundraising on Monday.
The property management section of JD.com, established in February 2019, has a fund to invest in warehousing facilities. The fund was founded by the wealthy Singapore sovereign fund, and by February 2019 had committed a capital of 4.8 billion yuan ($ 698 million).
JD.com departed from its logistics unit in an independent entity in 2017, and then opened its delivery and warehousing services to third party companies.
In 2018 the division said they were raising $ 2.5 billion from a reserve, including Hillhouse Capital Group and Sequoia Capital.
However, the unit is always a loss maker for JD.com. Earlier this year, JD.com CEO Richard Liu told employees in an internal letter that the losses division made up 2.8 billion yuan in 2018. The company changed to compensate for messengers, moving payments from a fair salary to a scheme in face delivery.
At a press conference in June, Bing Fu, the head of planning and development at JD Logistics, said that the IPO unit had an opportunity but that there was no clear timeline.
Reporting by Josh Horwitz, edited by David Evans
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