Dallas, Texas 07/08/2015 (Financialstrend) – Alibaba Group Holding Ltd (NYSE:BABA) is to invest $205 million as it moves to expand its holdings in Singapore Post Ltd according to a statement from the two companies. Part of the funds is to be used to bolster SingPost’s e-commerce prospects in the country. The investment should increase the company’s holdings by 5% having bought a 10% stake holding last year in SingPost for $249 million.
The e-commerce giant plans to bolster its e-commerce operations in the country with a $92 million investment in SingPost subsidiary, Quantium Solutions International that provides e-commerce logistics. The investment should bring its stakes in the subsidiary to 34%. The investment ranks Alibaba Group Holding Ltd (NYSE:BABA) as the second largest shareholder in SingPost right behind Singapore Telecommunications.
Quantium Solutions International provides warehousing, and logistics solutions across Asia Pacific and will become a joint venture with Alibaba Group Holding Ltd (NYSE:BABA) and SingPost. The latest investments are part of a strategic plan of expanding abroad away from the Chinese market where Alibaba operates as a monopoly.
Alibaba Group Holding Ltd (NYSE:BABA) is teaming up with embassies and countries as it looks to host more products on its online portals led by Tmall Global. The e-commerce is also ramping up logistics investments as it looks to provide Chinese merchants a desired platform where they can sell goods to people across the globe through the AliExpress website.
Alibaba spokesperson expects the joint venture with SingPost to increase Chinese merchant’s delivery as well as reliability and efficiency on the global market. The partnership should also help SingPost offset the ongoing decline in mail revenue with a shift of focus to logistics business.
The Chinese Titan has also moved to beef up sales of luxury products by investing in a luxury flash sale website Mei.com. The website deals with discounted items such as Armani clothes, Tiffany, Jewellery, and Shiseido cosmetics. Media reports indicate that the company is on course to invest $100 million on Mei.com.