Alibaba funds $3bn from SoftBank to enhance food delivery business
The Alibaba-owned food delivery business, Ele.me, and Koubei has merged and received $3bn from China-based company, SoftBank, CNBC reports.
In its earning statement, Alibaba said: “As a result of this reorganization, subject to closing conditions, we will consolidate Koubei, which would result in a material one-off revaluation gain when the transaction closes.”
It is anticipated that the collaboration of Koubei and Ele.me will enable Alibaba to increase its reach into other smaller cities and towns.
It hasn’t been confirmed whether the investment by the Japanese conglomerate giant, SoftBank, is coming from its $100bn Vision Fund.
The move comes after it was confirmed that the bank has substantially invested in on-demand services such as ride-hailing apps like Uber.
- Alibaba set to invest $121mn in Guizhou Ensure Chain Pharmacy
- Singapore Airlines and Alibaba join forces to improve customer experience for travellers
- Xiaomi plans to sell more premium smartphones to meet increased demand
Alibaba is battling heavily with its close Chinese rival, Tencent, in the food delivery space as both companies compete to lead the online-to-online space.
The e-commerce giant, Alibaba, has posted an excellent quarter that ended in June, with results that posted 61% revenue growth.
Daniel Zhang, Chief Executive Officer of the Alibaba Group, said: “Alibaba had an excellent quarter, with significant user expansion and even more robust engagement across our growing ecosystem.”
“Our China retail market continues to gain share, with New Retail initiatives driving further revenue growth and enabling our retail partners to seamlessly serve customers.”
Business Chief Legend: Ho Ching, CEO of Temasek
Ask Singaporeans who Ho Ching is, and the majority will answer the ‘wife of Prime Minister Lee Hsien Loong’. And that’s certainly true. However, she’s also the CEO of Temasek Holdings, Singapore’s sovereign wealth fund, and one of the world’s largest investment companies.
Well, she is until October 1, 2021, as she recently announced she would be retiring following 16 years as CEO of the investment giant.
Since taking the reins in 2004, two years after joining Temasek as Executive Director, Ho has gradually transformed what was an investment firm wholly owned by Singapore’s Government into an active investor worldwide, splashing out on sectors like life sciences and tech, expanding its physical footprint with 11 offices worldwide (from London to Mumbai to San Francisco) and delivering growth of US$120 billion between 2010-2020.
Described by Temasek chairman Lim Boon Heng as having taken “bold steps to open new pathways in finding the character of the organisations”, Ho is credited with building Temasek’s international portfolio, with China recently surpassing Singapore for the first time.
As global a footprint as Ho may have however, she has her feet firmly planted on Singapore soil and is committed to this tiny city-state where she was not only educated (excluding a year at Stanford) but has remained throughout her long and illustrious career – first as an engineer at the Ministry of Defence in 1976, where she met her husband, and most notably as CEO of Singapore Technologies, where she spent a decade, and where she is credited with repositioning and growing the group into the largest listed defence engineering company in Asia.
It’s little wonder Ho has featured on Forbes’ annual World’s Most Powerful Women list for the past 16 years, in 2007 as the third most powerful woman in business outside the US, and in 2020 at #30 worldwide.
But it’s not all business. Ho has a strong track record in Singapore public service, serving as chairman of the Singapore Institute of Standards and Industrial Research and as deputy chairman of the Economic Development Board; and is a committed philanthropist with a focus on learning difficulties and healthcare.
As the pandemic kicked off, she not only led active investments in technology and life sciences, with German COVID-19 vaccine developer BioNTech among the most recent additions to Temasek’s portfolio, but through the Temasek Foundation – the firm’s philanthropic arm which supports vulnerable groups close to Ho’s heart, handed out hand sanitiser and face masks.
So, you would be forgiven for thinking that at age 68, Ho might simply relax. But in March 2021, just as she announced her retirement from Temasek, Ho joined the Board of Directors of Wellcome Leap, a US-based non-profit organisation that’s dedicated to accelerating innovations in global health. Not ready to put her firmly grounded feet up yet it seems.