JD Logistics Raises $218 Million Investment Fund

The fund, called Huihe Capital, will complement JD.com's own investment team, which backs deals across various industries.

Belinda Zhou
    Jun 24, 2019 5:30 PM  PT
JD Logistics Raises $218 Million Investment Fund
author: Belinda Zhou   

The logistics arm of the Chinese e-commerce giant JD.com Inc. (Nasdaq: JD) has raised $218 million to invest in companies and technologies focused on logistics.

JD Logistics and its parent company, as well as "several listed companies and government-led funds," will be limited partners the new fund, according to the announcement.

The fund, named Huihe Capital, will focus on early-stage investments in logistics technology and intelligent supply chain.

A partner of Huihe Capital, Xiaopeng Wang, said the fund has a strong industrial background amid a weakened financial environment. 

"This endowment constitutes the unique competitiveness of the fund, which can be summarized with sights, investment, help," Wang said.

Another partner, Hao Sun, said the investment strategy is "logistics plus X," referring to factors including supply chain, asset management, finance, services, technology, smart manufacturing, and others.

"We believe that the essence of today's logistics lies in the infrastructure of physical transactions with factors like warehouses, goods, vehicles, people, data, capital, etc.," Sun said.

The logistics division of JD.com is reportedly seeking an initial public offering, though it has not publicly filed a prospectus.

"Currently we don't have this plan but we think maybe in the future it is possible," Bing Fu, head of planning and development at JD Logistics, said.

JD Logistics raised $2.5 billion in February, which was the first public financing of Jingdong Logistics since it became independent in April 2017. It ranked as one of the the largest single financing rounds in China's logistics industry.

Shares in JD.com closed at $28.91 per American depository share Monday, down 1 percent.