Alibaba to take cloud arm public within next 12 months

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Alibaba is set to spin off its cloud unit to pursue an IPO within the next 12 months.

Daniel Zhang, chairman and CEO of Alibaba Group, said during the firm’s most recent earnings call that full autonomy would better streamline operations.

“Cloud Intelligence’s business model, customer profile, and the stage of development are fundamentally different from the other consumer-focused business in Alibaba ecosystem,” he stressed.

Zhang is also acting president for Alibaba’s Cloud Intelligence Group, which operates its cloud, AI, and DingTalk services, among others.

For the latest quarter, the company’s cloud operations generated about US$2.6 billion in revenue, a 2% dip year over year.

Zhang added that Alibaba will prep for the IPOs of its fresh produce business Freshippo and logistics segment Cainiao within the next 12 to 18 months.

Meanwhile, its International Digital Commerce Group, which houses Lazada and AliExpress, is also eyeing external fundraises to fuel its global expansion.

These developments come after the Chinese tech giant announced an overhaul of its business, which saw its operations divided into six units.

See also: Why Alibaba should spin off Lazada