Paul Bischoff · · 1 min readJD invests $171M in Chinese ERP software firm Kingdee for 10% stake
JD, Alibaba’s biggest ecommerce competitor in China, and ERP software firm Kingdee International Software Group today jointly announced the former will invest HKD 1.3 billion (US$171 million) in the latter. JD will take a 10 percent stake in Kingdee, according to QQ Tech.
The partnership will see the two companies entering a strategic collaboration, but JD wouldn’t comment specifically on what it has planned. Kingdee makes enterprise resource planning (ERP) software, which is used to manage many aspects of a business like inventory, expenses, manufacturing, logistics, and sales. Its business model is similar to US-based Intuit, which develops financial and tax preparation software and related services for small businesses.
Kingdee claims to be the largest ERP software firm in China for 10 years running. Founded in 1993, more than 50 million subscribers across 4 million businesses use its services worldwide. Kingdee says it will put the money toward future potential acquisitions and working capital.
Editing by Michael Tegos
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