Warburg Pincus-backed e-Shang receives pre-IPO funding

The company is expected to go public "in the next few years."

E-Shang focuses on developing institutional-quality warehouses as well as providing logistics services in Shanghai, Beijing, Guangzhou and several second-tier cities. Its portfolio of warehouses includes one million square meters of completed and ongoing projects.

"We continue to see robust demand from customers for quality logistics facilities, driven by increasing domestic consumption and a shortage of warehousing supply," said Joseph Gagnon, managing director at Warburg Pincus.

Luke Wei, a managing director at Goldman Sachs, added that e-Shang is well positioned to capitalize on potential for growth in the logistics sector as China's economy shifts to a more consumption-based model.

These investors are not alone in seeking to capitalize on the China logistics opportunity. In November, Global Logistic Properties, a Singapore-listed warehouse developer largely owned by GIC Private, has launched a $3 billion China-focused logistics infrastructure fund.

Domestic e-commerce giant Alibaba Group is also investing aggressively in the space to support the expected growth in online shopping. Earlier this week, the PE-backed company announced a HK$2.8 billion ($360 million) investment in Haier Electronics Group to expand its logistics and distribution network.

In May Alibaba formed a China Smart Logistic Network, also known as Cainiao Network Technology, teaming up with five existing logistics providers to help the company achieve greater penetration in lower-tier cities and save on costs. Chinese conglomerate Fosun International contributed RMB500 million ($81.4 million) for a 10% interest in the project.

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• Topics
• Expansion
• Greater China
• Industrials
• Real estate
• IPO
• China
• Growth capital
• Warburg Pincus Asia
• Goldman Sachs
• Logistics
• Real estate