Google is multiplying its investments in Asia to take advantage of the development of the middle class. The Mountain View firm is this time placing 550 million dollars (about 475 million euros) in the Chinese e-merchant JD.com.
Google is strengthening its presence in Asia. Mountain View has just invested 550 million dollars (about 475 million euros) in Chinese e-merchant JD.com, Alibaba’s number one competitor.
In return for this capital increase, Google would now hold a little less than 1% of the company’s capital.
In a joint press release, the two companies explain their desire to collaborate on a series of strategic initiatives, including the development of new retail solutions in Europe, the United States and Southeast Asia.
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The goal is to combine JD.com’s supply chain experience (the e-merchant recently unveiled a highly automated warehouse in Shanghai that employs only four people) with Google’s expertise in data, marketing, and customer knowledge to develop new products online. This merger should, therefore, result, in the first place, in the promotion of JD.com’s products on the Google Shopping platform around the world.
Listed on the Nasdaq, JD.com is now valued at approximately $60 billion. Among the principal shareholders of JD.com is the American Walmart but also the Chinese Tencent, at the origin of the Wechat application and Alibaba’s great rival and its Alipay application.
In recent months, Google has accelerated its investments on the Asian continent to take advantage of the development of the middle class and the lack of infrastructure in retail and finance, in particular. Besides, Google recently acquired a stake in Indonesian Go-Jek, a specialist in tourism with chauffeur vehicles services, and according to Reuters sources could invest in the Indian e-merchant Flipkart.