(Yicai Global) Sept. 15 -- China's e-commerce giant JD.Com Inc. [NASDAQ:JD] and its financial platform, JD Finance, will partner with Thailand's retail magnate Central Group Co. and the local financial service provider Provident Capital Ltd. to establish two joint ventures that will provide e-commerce and financial services in Thailand, with a total investment of USD500 million.
Central Group will hold a 50 percent stake in the joint ventures, while the rest of the investment will be made by JD.Com, JD Finance and Provident Capital, tech.ifeng.com reported today. Provident Capital and JD.com previously reached an agreement on strategic cooperation in e-commerce business in Indonesia.
JD.Com will offer technical support during the cooperation, including in fintech, e-commerce and logistics sectors. Central Group will leverage its vast retail outlets to provide the physical store network, brand relationship, merchants and membership system.
Central Group will also open several flagship stores on JD.com to introduce its department stores, main retail chain stores as well as several selected brands.
Thailand's vast population and advanced infrastructure including a well-established logistics network offer huge potential to development of e-commerce and fintech services. The cooperation will provide immensely favorable conditions for JD.Com to further expand to the Southeast Asian market, JD.Com CEO Richard Liu said.