JD teams up with Sequoia China to raise $5.8b for state-owned Starquest Capital

JD.com, China’s second largest ecommerce company, along with Sequoia Capital China and Chinese state-owned Capital Venture Investment Fund, is raising up to US$5.81 billion (RMB 40 billion) to for the yuan-dominated investment firm Starquest Capital, which focuses on late-stage and privity equity investments, according to a Reuters report citing people familiar with the matter.

Starquest Capital, also know as Xinjie Capital, has raised 25%, or 10 billion, of the planned 40 billion, sources said. The fund invests into areas such as artificial intelligence, automation, robotics, etc. that fall under China’s long-term and strategic planning to push forward the country’s technological advancement.

Sequoia China will not be participating in the management of the fund but will serve as a shareholder.

 Takeways

– JD and Sequioa China are raising for a Chinese state-owned fund that invests into areas including AI, robotics and automoation to advance the country’s technology

– The goal of RMB40b is 25%, or 10b done, sources said

– Nasdaq-listed JD with a $41b market cap, has been investing into other tech firm to fuel its own expansion

– JD is backed by Tencent which usually aligned with Sequoia China, comparing to the Alibaba + SoftBank alliance when it comes to strategic co-investing

Editor: Ben Jiang