JD.com’s property arm to raise $700m in Warburg, Hillhouse-led round

Chinese ecommerce major JD.com said that its infrastructure asset management arm is expected to raise US$700 million in its latest funding round.

Investors co-leading the JD Property fundraise include Hillhouse Capital and Warburg Pincus, according to a statement. The group of investors will back the company as part of a non-redeemable series A preferred share financing.

Photo credit: Daniel Cukier

The update comes as JD posts net revenues of 224.3 billion yuan (US$34.4 billion) for the fourth quarter of 2020, representing a 31.4% increase from the same period last year. The company also that said its annual active customers grew by 30.3% to 471.9 million in 2020 from 362.0 million the previous year.

In Q4, JD Property launched its first logistics properties development fund with 3 billion yuan (US$462.4 million) of assets under management. Key investors in the fund include Singapore’s GIC and Abu Dhabi’s Mubadala Investment Company.

“During this quarter, JD continued its strategic transformation into a supply chain-based technology and service company with increasingly diversified sources of revenues,” Richard Liu, the company’s chairman and CEO, said in a statement.

In addition to JD Property’s financing round, the company also gave updates on its other businesses, including the initial public offering of JD Health and JD Logistics’ listing application to the Hong Kong Stock Exchange.