Friday, 2024 March 1

JD teams up with Sequoia China to raise $5.8b for state-owned Starquest Capital

JD.com, China’s second largest ecommerce company, along with Sequoia Capital China and Chinese state-owned Capital Venture Investment Fund, is raising up to US$5.81 billion (RMB 40 billion) to for the yuan-dominated investment firm Starquest Capital, which focuses on late-stage and privity equity investments, according to a Reuters report citing people familiar with the matter.

Starquest Capital, also know as Xinjie Capital, has raised 25%, or 10 billion, of the planned 40 billion, sources said. The fund invests into areas such as artificial intelligence, automation, robotics, etc. that fall under China’s long-term and strategic planning to push forward the country’s technological advancement.

Sequoia China will not be participating in the management of the fund but will serve as a shareholder.

 Takeways

– JD and Sequioa China are raising for a Chinese state-owned fund that invests into areas including AI, robotics and automoation to advance the country’s technology

– The goal of RMB40b is 25%, or 10b done, sources said

– Nasdaq-listed JD with a $41b market cap, has been investing into other tech firm to fuel its own expansion

– JD is backed by Tencent which usually aligned with Sequoia China, comparing to the Alibaba + SoftBank alliance when it comes to strategic co-investing

 

Editor: Ben Jiang

36Kr Global Writers
36Kr Global Writers
The tech ecosystem is roaring. Unicorns valued at billions of dollars have emerged worldwide, while venture capital and strategic investors are constantly on the lookout for the next big thing. 36Kr Global is committed to establishing ties between global stakeholders and providing the most vital information about China’s tech scene and capital markets.
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