May 20, 2020

Alibaba Group to invest $15.2bn in Cainiao Smart Logistics Network over five years

Alibaba Group
e-commerce
Jack Ma
Mexico
2 min
Alibaba Group to invest $15.2bn in Cainiao Smart Logistics Network over five years

E-commerce giant Alibaba Group has announced it plans to invest $15.2bn in Cainiao Smart Logistics Network over the next five years.

This will boost Alibaba’s stake in the company from 47% to 51%, making it the majority shareholder and allowing it to take up four of the seven seats on the board.

Cainiao was co-founded by Alibaba in 2013, along with partners including Fosun Group, Intime Group and various logistics firms. The company oversees around 57mn deliveries every day.

See also: 

Mexico partners with Alibaba to increase trade ties with China 

Alibaba smashes net profit expansion, doubling to $2.1bn 

Latest edition of Business Review Asia 

The company provides logistics support directly to Alibaba’s top e-commerce platform Taobao.

Thanks to the investment, Cainiao will now be valued at $20bn.

Alibaba stated that the investment will be used to develop data technology and improve warehousing and delivery development.

Alibaba is expanding its e-commerce and logistics network abroad, targeting Indonesia, Thailand and the Philippines with direct sales. This will be made possible by a $2bn investment in online retailer Lazada Group which operated across southeast Asia.

Investment in Cainiao also points to Alibaba’s intent to boost control over the domestic warehousing and delivery market.

Alibaba is also targeting Canada as a next centre for expansion, with founder Jack Ma holding a business summit, Gateway 17, in Toronto to gain popularity among firms.

The company has also recently signed an MoU with the Mexican Ministry of Economy to get more Mexican products on its platforms, especially in China.

At present, Cainiao has stated it is not considering an IPO. The deal is expected to be completed in October.

 

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Jun 18, 2021

Rainmaking + ESG Launch Supply Chain Resilience Accelerator

Rainmaking
EnterpriseSingapore
Innovation
supplychain
4 min
Rainmaking and ESG have launched the Supply Chain Resilience Accelerator, uniting startups with enterprises and championing innovation

Rainmaking, one of the world’s leading corporate innovation and venture development firms that create, accelerate and scale new business, has partnered with Enterprise Singapore (ESG), a government agency that champions enterprise development, to launch Singapore’s first ‘Supply Chain Resilience Accelerator’.

The new programme will unite startups and enterprises to boost scalable technology solutions that help fuel supply chain resilience by addressing pain points in transport and logistics. 

Over the last 13 years, Rainmaking has launched 30 ventures totalling US$2bn, including  Startupbootcamp. Having invested in over 900 startups that have raised more than US$1bn, Startupbootcamp is one of the world’s most active global investors and accelerators.

The new programme looks to help build more resilient supply chains for Singapore’s burgeoning network of startups by leveraging its advantageous position as a global trade and connectivity hub. As part of the Supply Chain Resilience Accelerator programme, no less than 20 startups with high-growth potential will have the opportunity to become a part of Singapore’s vibrant ecosystem of startups.

 

Calling Supply Chain Solution Startups!

The programme will kick off with an open call for startups who specialise in supply chain solutions for end-to-end visibility, analytics, automation and sustainability. 

Applicants will then be shortlisted and receive nurturing from Rainmaking, fostering valuable engagements with corporates to drive scalable pilots with the aim to stimulate investment opportunities.

Covid-19 exposed the fragility of global trade, and the Supply Chain Resilience Accelerator is our opportunity to spot weak links and build back better. Piloting outside tech can be an incredibly efficient way to test viable solutions to big problems, provided you de-risk and design for scale. Our programme does precisely this by helping corporate decision-makers and startups to work on compelling business opportunities, anticipate operational risks, and ultimately co-create solutions fit for wider industry adoption,” said Angela Noronha, Director for Open Innovation at Rainmaking. 

Pilots will run from Singapore, with the objective that relevant organisations may adopt successful solutions globally. To that end, Rainmaking is currently engaging with enterprises specialising in varying industry verticals and have expressed interest in partnering.  

“Even as we continue to work with startups and corporations all over the globe, we are so pleased to be anchoring this program out of Singapore. With a perfect storm of tech talent, corporate innovators, and robust institutional support, it’s the ideal launchpad for testing new solutions that have the potential to change entire industries. We look forward to driving the transformation with the ecosystem,” added Angela Noronha. 

One of the first selected corporate partners is Cargill, a leader in innovating and decarbonising food supply chains.

"Cargill is constantly exploring ways to improve the way we work and service our customers. Sustainability, smart manufacturing and supply chain optimisation are key areas of focus for us; exploring these from Singapore, where so many key players are already innovating, will help us form valuable partnerships from day one. We look forward to joining Rainmaking and ESG on this journey to work with, support, and grow the startup community by keeping them connected to industry needs,” said Dirk Robers, Cargill Digital Labs.

In order to raise awareness on the importance of building resilience and how technology can be leveraged to mitigate risks of disruption, industry outreach efforts will include fireside chats, discussions and demo days.

In July, Rainmaking will host a virtual insight sharing event for innovation partners as well as a ‘Deal Friday’ session that connects businesses, investors, and selected startups with investment and partnership opportunities. 

Programme events will also benefit Institutes of Higher Learning by offering exposure to how advanced practitioners leverage new technologies to transform traditional supply chain management and share real-world case studies and lessons learned, better equipping next-gen supply chain leaders.

“As an advocate of market-oriented open innovation, we welcome programmes like the Supply Chain Resilience Accelerator, which aims to help companies resolve operational pain points, strengthen supply chain resilience and spur growth in a post-pandemic world. With a strong track record in driving open innovation initiatives for the transport and supply chain industry, we believe that Rainmaking’s in-depth knowledge of the ecosystem and network of global partners can complement Singapore’s efforts in accelerating our business community’s adoption of tech-enabled tools, to better manage future disruptions and capture opportunities arising from shifts in global supply chains. This will in turn help to strengthen our local ecosystem and Singapore’s status as a global hub for trade and connectivity,” said Law Chung Ming, Executive Director for Transport and Logistics, Enterprise Singapore.

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