Alibaba Group will invest $3.3 billion to increase its equity stake in Cainiao Smart Logistics Network from 51% to 63%.
The increased equity stake will come from newly issued ordinary shares in its latest financing round and purchasing certain equity interest from an existing Cainiao shareholder.
With more financial resources, Cainiao will continue to invest in technologies and logistics infrastructure services to strengthen its smart logistics network and enable innovations in business models, services and technological capabilities.
Daniel Zhang, executive chairman and CEO of Alibaba Group says: “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.”
Alibaba Group kicked off the 2019 11.11 Global Shopping Event with $1 billion of sales settled through Alipay in one minute eight seconds, and $12 billion in the first hour.
In the hours leading up to the shopping event, Alibaba’s video streaming platform Youku hosted the fifth annual countdown gala, which included interactive performances from Taylor Swift and other celebrities.