JD.Com Inc.’s (NASDAQ:JD) Financial Unit Raises $1.01 Billion From High-Profile Investors
Just-released report names Cannabis Stock of the Year for 2019! Their last pick has seen a +1,200% return since he released it!
This stock has all of the makings of the next great cannabis stock – early-mover advantage, international exposure and influential partnerships, plus it has a product that is unlike anything else on the market…
JD.Com Inc.’s (NASDAQ:JD) financial arm managed to raise $1.01 billion today from a group of high-profile investors. This makes JD.Com’s money-focused unit the second Chinese financial arm of an e-commerce giant to successfully raise over $1.01 billion. Alibaba Group Holding Ltd (NYSE:BABA)’s Ant Financial raised an undisclosed round at $45-$50 billion valuation, last summer.
Ant Financial’s rival company’s success in raising such an enormous investment did not come as a surprise to the marketing analysts. JD.com is also a Chinese company like Alibaba that developed a financial service arm to garner substantial funding from external sources.
The pack of investors was led by China Taiping Insurance, Sequoia Capital China, China Harvest Investments and undisclosed financiers, which aided JD Finance achieve a valuation of $7.1 billion post-money. Although JD Finance is nowhere close to Ant Financial, which also includes Alipay, one of the most popular payment services in China, it certainly made a remarkable impression on analysts.
JD.com reaches 46 cities
JD.com’s operational reach covers 196 warehouses spanning across 46 cities. JD Finance offers wide range of financial products as well as services to its consumers, SME’s startups and various other businesses in the country. In 2015, it collaborated with ZestFinance, a U.S.-based company, and formed a joint venture offering different types of credit services across China. The newly raked in funds will be used to expand the services offered by JD Finance.
JD Finance became one of the leading entities in the Chinese e-commerce space by making the perfect use of its expertise in e-commerce and used the big data and technology available for providing financial solutions to the consumers in China. The company used it to support innovative startups, and traditional enterprises say CEO of JD.com, Richard Liu.
According to him, the company will reach a better position to lead the financial technology ecosystem of China by collaborating with top start-up service and financial institutions. Apart from JD.com, the three Chinese companies that offer financial and banking services in the country include Alibaba, Baidu Inc (ADR) (NASDAQ:BIDU) and Tencent (BAT).