Alibaba doubles Cainiao logistics association two years after buying a majority stake in the company. The Chinese giant said today it will invest an additional 23.3 billion yuan (about $ 3.33 billion) to raise Cainiao's equity to 63% from 51%.
In a statement, Alibaba said it will subscribe for newly issued Cainiao shares in the latest financing round and also buy equity stake from a certain, unnamed Cainiao shareholder.
Cainiao was founded by Alibaba in 201
Affiliates, which reported revenue of $ 680 million in the quarter ended September, match riders, deliveries and inventory, which underlie the logistics side of e-commerce platforms Taobao and Tmall in the same way that Alipay supports the payments side, analysts say .
Owner of Intime Group department store, conglomerate Fosun Group, and a number of other logistics companies also own shares in Cainiao.  In 2017, Alibaba cut its stake in Cainiao to 51% from 47%, and at that time pledged to spend more than 100 billion yuan ($ 14.3 billion) to expand its logistics business over five years.
The Chinese technology group has tightened its grip on the nation's logistics sector in recent years. Earlier this year, the company bought almost 15% stake in STO Express. As of earlier this year, Alibaba also owned around 10% of ZTO, 11% of YTO and 27.9% of Best Logistics.
Express delivery and logistics companies are crucial for e-commerce companies, Alibaba said last year. According to the company, more than 50.7 billion packages were distributed by e-commerce companies in the country last year.