Logistics leading player YTO, announces it has secured $970million from its long-time ally and client Alibaba to accelerate international expansion .
20-year-old YTO disclosed it will sell 379 million shares to Alibaba at a price of 17.4 yuan per share, lifting Alibaba’s stakes in YTO from 10.5% to 22.5%. The founding couple of YTO owns a controlling stake of 41% via their wholly-owned firm after the transaction.
The new investment will allow Alibaba and YTO to deepen collaboration on areas including delivery, air freight, global network and supply chains and digital transformation as part of their ambition to beef up their global reach.
An Alibaba spokesperson said the company is “pleased to further strengthen the strategic partnership with YTO, focused on digitization and globalization to enhance the customer service capabilities.”
YTO, which commands a 14% share of China’s express delivery market, is among the five logistics behemoths that hail from eastern China’s rural county of Tonglu. Along with rivals STO, ZTO, Best Express and Yunda, YTO’s rise is inseparable from Alibaba, which relies on third-party logistics services rather than building its own infrastructure like Amazon and JD.com.
The e-commerce giant has over the years invested various amounts in all five major couriers from Tonglu, a relationship that anchors its logistics arm Cainiao, which matches vendors and express couriers to handle 50 billion parcels a year.