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The
fund's limited partners will include JD Logistics and the JD.com
mother company, in addition to "several listed companies and
government-led funds," the company said, declining to elaborate.
The fund will complement JD.com's own investment team which
carries out deals across a variety of sectors. Chinese news
website Jiemian first reported the fundraising on Monday.
JD.com's property management division also has a fund,
established in February 2019, to invest in warehousing
facilities. The fund was established with GIC, Singapore's
sovereign wealth fund, and by February 2019 had committed
capital of 4.8 billion yuan ($698 million), a filing showed.
JD.com spun off its logistics unit into a standalone entity in
2017, and then opened up the its delivery and warehousing
services to third-party companies.
In 2018 the division said it was raising $2.5 billion from
backers including Hillhouse Capital Group and Sequoia Capital.
However, the unit remains a loss-maker for JD.com. Earlier this
year, JD.com CEO Richard Liu told employees in an internal
letter that the division racked up losses of 2.8 billion yuan in
2018. The company also adjusted its compensation for couriers,
moving payments from a flat salary to a per-delivery scheme.
At a press roundtable in June, Bing Fu, head of planning and
development of JD Logistics, said an IPO was a possibility for
the unit but that it had no clear timeline in mind.
(Reporting by Josh Horwitz, editing by David Evans)
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