As part of the agreement, the China-based company is doubling down on its logistics affiliate Cainiao, two years after acquiring a majority stake in the latter. Alibaba also mentioned that it will subscribe newly issued Cainiao shares in its latest financing round and purchase equity interest from an unnamed Cainiao shareholder.
Co-founded by Alibaba in 2013, Cainiao’s aim was to bring organisation in Chinese logistics, particularly around ecommerce deliveries. In 2017, Alibaba not only bumped its stake in Cainiao to 51% from 47%, but it also committed to spend around USD 14.3 billion to expand the logistics business over five years.
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