JD Logistics hits first close on China industry fund
JD Logistics, the delivery unit of Chinese e-commerce giant JD.com, has reached a first close on a renminbi-denominated fund that invests in smart logistics and related technologies. The full target for the vehicle is RMB1.5 billion ($218 million).
Zhenui Wang, CEO of JD Logistics, said this is the first fund raised by the company since it spun-out from JD.com in 2017. JD Logistics – which provides a range of shipping and cold chain services to third-party clients as well as its parent – won support from the likes of Hillhouse Capital, Sequoia Capital China, Tencent Holdings and China Life Insurance, for a $2.5 billion funding round last year.
The company has made numerous direct investments, participating in rounds for companies that provide online matching services for freight forwarders and drivers, operate warehousing facilities, and develop logistics technology. JD Logistics and JD.com are contributing to the fund as LPs alongside listed companies, government guidance funds, fund-of-funds, and asset managers.
Hao Sun, a partner with Huihe Capital, the investment manager for the fund, said it will primarily focus on Series A through C rounds. Areas of interest range from supply chain finance to smart manufacturing.
JD Logistics is not the only logistics specialist raising capital for a strategy intended to tap technology development within the sector. Last year, private equity-owned warehouse operator GLP launched a private equity unit called Hidden Hill Capital, which sought to raise RMB10 billion for a fund that invests in the China logistics ecosystem. Its portfolio includes agricultural products distributor Wangjiahuan and on-demand delivery platform Yimidida.
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