Alibaba acquired Cainiao in additional $807 million and $15.2 billion

Alibaba Group Holding Limited acquired Cainiao Smart Logistics Network Limited in an additional investment of US$807 million. The e-commerce giant headquartered in Hangzhou increased its stake in the shipping network company to 51%. Alibaba will also invest an additional US$15.2 billion in the next five years.

Tinuku Alibaba acquired Cainiao in additional $807 million and $15.2 million

Alibaba today announced a step further as part of its strategy to expand its business scope. The Company has agreed to make an additional investment of RMB5.3 billion (US$807 million) to increase majority ownership in Cainiao as a logistics division.

Alibaba will also invest RMB100 billion (US$15.2 billion) over the next five years to strengthen its global logistics network to realize its service delivery mission in China within 24 hours and within 72 hours anywhere in the world.

This investment is the latest step by Alibaba to improve the overall logistics experience for the Alibaba ecosystem and enable greater efficiency using lower costs in the logistics industry sector.

Alibaba's stake in Cainiao will increase from 47% to 51% and Alibaba will get an additional new seat on the Cainiao board of directors to four of the seven available seats. The investment will be used for the development of data technology, smart warehousing, intelligent delivery and global logistics infrastructure.

"Our goal is to provide a comprehensive first class experience for consumers around the world Our commitment to Cainiao and additional investments demonstrates Alibaba's commitment to building the most efficient logistics network around the world," said Alibaba Group CEO Daniel Zhang.

"Increasing logistical capabilities within the Alibaba ecosystem will enable our strategy to bring online and offline retail to buyers and we will continue to deepen our cooperation with various logistics partners to achieve this goal," said Zhang.