Alibaba Group Holding Ltd will take a 14% stake in STO Express Co Ltd, one of the largest express delivery companies in China.
Reuters reported that STO Express said that its controlling shareholder planned to set up a new subsidiary that will own a 29.9% stake in the courier firm.
Alibaba will in turn invest Yuan4.7bn ($693.4m) for a 49% stake in the new subsidiary, and by extension hold more than 14% of STO Express.
STO Express is one of several companies that works with Alibaba under Cainiao, its logistics division launched in 2013.
Alibaba, in a separate statement, confirmed its investment in “one of the top five express delivery companies in China”, adding the investment is a step forward in its pursuit of the goal of 24 hour delivery anywhere in China and 72 hours globally.
STO Express is Alibaba’s fourth investment in the Chinese courier sector after it acquired minority stakes in YTO Express Group Co Ltd, Best Inc and ZTO Express (Cayman) Inc.
Cainiao provides software and shares data with warehouses, carriers and other logistics companies to deliver packages to shoppers on Tmall and Taobao, Alibaba’s largest e-commerce sites.
