JD.com’s property arm to raise $800m in series B money

JD Property, the infrastructure asset management arm of JD.com, is looking to raise US$800 million in a series B round led by Hillhouse Investment, Warburg Pincus, and an undisclosed global institutional investor, among others.

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China-based JD.com said in a statement that it will remain the majority shareholder of JD Property after the transaction is completed.

The funding will be used for JD Property’s business expansion, model transformation, and the development of its infrastructure property management capabilities.

The latest investment comes amid an improving sentiment among Chinese tech stocks, which reflects broader hopes that China’s crackdown on the sector is coming to an end after the government pledged greater support for the economy and capital markets.

See also: Can JD.com make a splash in SEA?

Earlier this month, JD Property said it would raise US$700 million in non-redeemable series A preferred share financing. JD Logistics is also looking to secure US$1.1 billion through a share placement with its parent firm and a primary capital raise.

JD.com swung to a net loss of US$800 million in the fourth quarter of 2021, down from a net profit of US$3.8 billion a year ago. That same year, the Chinese ecommerce giant posted a net loss of US$600 million, compared with a net profit of US$7.8 billion in 2020.