JD Logistics raised $2.5 billion led by Hillhouse and Sequoia

JD Logistics raised US$2.5 billion led by Hillhouse Capital and Sequoia China. The Chinese e-commerce giant and Alibaba's nearest rival will build a major logistics business after announcing JD.com units have raised the latest funding in which JD Logistics became an independent business in April at US$13.5 billion valuation.

JD Logistics announces the latest funding led by Hillhouse Capital and Sequoia China aims to raise capital. Participating in this funding includes China Merchants Group, Tencent, China Life, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International.

JD.com insists it will remain a shareholder of 81.4 percent. The company has unfurled a financial and business services arm where last year generated more than US$1 billion. JD Logistics is set to compete Cainaio which is backed by Alibaba's Ant Financial which takes 48 percent of the shares.

JD.com operates seven service centers and 405 warehouses in China. The company's network includes fresh products that require an efficient transport network and have tested automatic warehouses including delivery using drones.

JD.com's CEO, Richard Liu, said to build a network of related logistics in global e-commerce. The latest funding provides a way to make further investments in expanding excellence. There may also be synergies in which JD.com has made a series of investments in Indonesia, Thailand and Vietnam.