JD Joins Hands With Tencent: Hit $860 Million dollars to Vipshop, Presumed to Making Troubles for Ali

19/12/2017

According to the preferred stock financing agreement, Tencent and JD will subscribe to Vipshop’s Series A ordinary shares, in the amount of $604 million and $259 million respectively. After the deal, Tencent and JD each will hold 7% and 5.5% of Vipshop’s issued shares.

Concurrent with signing the preferred stock financing agreement, Tencent and JD also partnered with Vipshop respectively. Due to the strategic cooperation agreement, Tencent’s WeChat Wallet page will show Vipshop, and JD will also show Vipshop on its mobile APP, allowing consumers one-click access to Vipshop, helping it achieve GMV goals.

Positive Remarks From CEOs

“Vipshop has an outstanding management team and is strong in business of clothing and e-commerce pop-up stores. The strategic partnership with Vipshop will create many good synergies,” Richard Liu, chairman and CEO of JD, said. “This collaboration will further accelerate our access to the female consumer market and further expand our fashion business. We will make sure to provide users with a comprehensive shopping selection and the best shopping experience through constant collaboration with our top partners.”

Martin Lau, President of Tencent, said, “We are very happy to become a Vipshop strategic investor and partner. We look forward to helping Vipshop provide high-end clothing for the Chinese bourgeoisie via marketing and payment solutions. With strength in marketing, payment and machine learning, Tencent will promote the construction of a healthy and diversified new retail ecosystem.”

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