2 years, after getting the majority stake in firm, Alibaba is now doubling down on their logistics named affiliate Cainiao. These Chinese giant has said that they would invest an extra $3.33 billion to boost their equity in the Cainiao from 51% to 63%. Alibaba in a statement has said that they will subscribe the newly released Cainiao shares in their most recent financing round. Besides, they are also purchasing the equity interest from an unnamed Cainiao shareholder. Alibaba co-founded this Cainiao in 2013 to carry this organization in the Chinese logistics, especially around the E-Commerce deliveries. Furthermore, today the Cainiao has powered a significant amount of the logistics of Alibaba which is needed across the nation. The affiliated reported revenue of $680 million in the quarter which ended in the September. Besides, the affiliate has matched the riders, warehouses as well as the deliveries by underpinning the logistics E-Commerce side like Tmall and Taobao in the similar way.
The owner of the department store Intime Group, the Fosun Group and some logistic firms own the stakes of Cainiao. During 2017, Alibaba had bumped their stake in Cainiao to increase from 47% to 51%, and at that similar time, they had committed to spend $14.3 billion to extend the logistics for more than 5 years. The group of Chinese technology has tightened their grip on logistics sector in their nation in these years. Earlier of the 2019, the firm purchased around 15% stakes of the STO Express and as of earlier, Alibaba also possessed about 12% of YTO and 10% of ZTO.