Provident, JD.com back Thailand e-commerce, fintech JVs

The parties will establish two joint ventures, with half of the initial capital coming from Central Group and the rest to be put in by the other three parties. JD.com will also contribute technology, e-commerce and logistics expertise, while JD Finance – JD.com’s financial services affiliate – will offer insights into developing fintech services.

Central Group will leverage its store network and relationships with brands and merchants, and open multiple stores on the e-commerce platform to accelerate its omni-channel growth. The company claims to be Thailand’s largest retail developer with 30 shopping centers comprising one million square meters in leasable area. It also has interests in department stores – including Robinson Department Store – and consumer goods. Revenue came to THB29.2 billion ($883 million) in 2016.

“Thailand’s large population and developed infrastructure, including strong national logistics networks, give it tremendous potential for both e-commerce and fintech services,” said Richard Liu, JD.com’s chairman and CEO, in a statement. “Working with Thailand’s strongest retail conglomerate, with a massive shopping mall and department store network, gives us a huge competitive advantage as we expand further into Southeast Asia.”

JD.com is not the first of China’s internet giants to target Thailand through a local partnership – Tencent Holdings teamed up with VC-backed digital magazine platform Ookbee earlier this year – but the Central Group tie-up is the largest deal. It should allow JD.com to take on Chinese counterpart Alibaba Group, which operates across Southeast Asia through Lazada.

China’s incumbent technology sector leaders – Baidu, Alibaba and Tencent – have all made forays into Southeast Asia and they are being joined by second-generation players such as JD.com and Didi Chuxing. In addition to looking for acquisitions and partnerships, these companies are said to be willing to participate in institutional funding rounds for local start-ups.

Provident is also JD.com’s strategic partner for Indonesia, where the Chinese company has already invested substantially in logistics infrastructure. Provident’s interests in Southeast Asia span the internet, telecom towers, and gold and copper mining. In 2014, the GP and Saratoga Capital bought a majority stake in Merdeka Copper Gold as part of an agreement to settle an ownership dispute. The business subsequently listed in Indonesia.

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• Topics
• Southeast Asia
• Technology
• Consumer
• Greater China
• China
• Thailand
• TMT
• JD.com