Alibaba's Logistics Arm Cainiao Network Has No Plans for New Financing, CEO Says
Yicai Global
/SOURCE : Yicai
Alibaba's Logistics Arm Cainiao Network Has No Plans for New Financing, CEO Says

(Yicai Global) Sept. 22 -- Cainiao Network Technology Co., the logistics unit of Alibaba Group Holding Ltd. [NYSE:BABA] which is valued at CNY50 billion (USD7.5 billion), after it raised CNY10 billion in March, has no immediate plans for new financing as it is well funded, CEO Tong Wenhong told Yicai Global.

Some world-class investors have shown interest in Cainiao Network, but the Hangzhou-based company is currently well funded, Mr. Tong said yesterday.

The courier has three business goals: build and upgrade data, logistics and other infrastructure with partners; create digital products to help distributors and partners boost efficiency; and set standards to form an alliance that will build on the members' strengths.

Cainiao Network has a clear plan for making profit, Mr. Tong said. "We're an intelligent data platform enterprise, committed to helping our logistics partners and distributors through digital and intelligent products to make profits by increasing their orders and their efficiency, so that Cainiao will benefit as well," he said.

Alibaba founder Mr. Jack Ma has said that Cainiao Network will not enter the express delivery business, so the manner in which it makes profit will be different from traditional express delivery companies.

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