Alibaba is now the second largest stakeholder in SingPost
Alibaba Group Holding is the Chinese e-commerce giant which has captivated the information technology sector of China. In a short span of time, the company has grown itself immensely and it is now valued at a massive $216 billion in the market. Alibaba is the largest B2B business as well of the world however the only negative thing about the company is that its international market presence is negligible. A company of that size should penetrate in the international markets and create a healthy revenue stream for it but this is not the case with the Chinese online retailer.
Despite of trying a lot to penetrate in the United States as well as other markets internationally, it somehow never leaves expanding in Asia. According to Forbes, relating latest Alibaba news, Alibaba Group has made a new investment in SingPost in order to bolster the logistics presence within Asia. It is believed that the company is determined to ‘deepen’ the ties with Singapore National Post or SingPost, the postal service provider of Singapore. It is an attempt by the company to grow its business internationally in the coming times.
Forbes reported, “Alibaba, which last year invested $249 million for a 10.35% stake in Singapore Post Ltd, has agreed to spend another $138.6 million to acquire an additional 5% stake. The company will hold 14.51% of SingPost upon completion of the deal, which is subject to the approval of SingPost shareholders and Singaporean authorities, Alibaba announced in a statement today.”
Furthermore, Alibaba is all set to invest further in the subsidiary of SingPost, Quantium Solutions International at $67.85 million and for a 34 percent stake in it. The subsidiary of SingPost provides logistics and warehousing services and solutions to 10 countries or more through Asia Pacific.
Quantium Solutions International will now be a joint venture between the Chinese e-commerce giant and SingPost. The Chief Executive of the company, Daniel Zhang, stated “This additional investment into SingPost and establishment of a joint venture signify our commitment in expanding our global logistics footprint, which in turn will help Chinese businesses sell, and global brands deliver more easily around the world.”
It is known that this partnership will now further enhance and improve the durability, reliability, and efficiency of the company’s delivery to most parts of the world. According to a spokesperson of Alibaba on latest Alibaba updates, the deal will also help Singapore Postal service to become a common regional logistics platform as it is going through a rough patch lately. Alibaba is the second largest company to hold stakes in SingPost after Singapore Telecommunications.