Alibaba Group Holding Ltd’s on-demand services unit is close to securing $1.2 billion of funding for expansion after getting backing from first-time investors including Silver Lake Management and China’s sovereign wealth fund, people familiar with the matter said. The latest round for Koubei, which deals in local services such as food delivery, will surpass a $1 billion target with backing from China Investment Corp, according to the people, who asked not to be named because the matter is private…Full Article: China Daily Dec 2016

Key Point

  • Other investors in Alibaba’s Koubei online platform (food delivery) includes CDH Investments, China Investment Corp (CIC), and Yunfeng Capital.

ChinaAg Comments

  • In December 2016, Alibaba used the “Double 12” shopping promotion to market Koubei to customers.
  • In October 2016, CDH Investments announced plans to reduce its stake in WH Group from 19.77% to 12.94%, and may lower it further to 8.18% at a later date.
  • In September 2016, Yum Brands announced it secured investors for its Chinese spinoff. Primavera Capital Group would invest US$410 million while Zhejiang Ant Small & Micro Financial Services Group (Alibaba’s online payment application Alipay) would invest US$50 million.
  • In August 2016, CDH Investments announced plans to sell a 10.61% stake (~US1.19 billion) in WH Group. As a result of the sale, CDH Investments stake in WH Group dropped from 30.39% to 19.77%.
  • In June 2015, Alibaba and Ant Financial acquired Koubei (50/50 joint venture, US$483.3 million each) to counter the Tencent-backed (see also JD.com) Meituan-Dianping online platform.
  • In May 2016, Singapore’s Temasek Holdings, China Investment Corp (CIC) and KKR advanced to the second round of bidding for a minority stake in Yum’s Chinese division. At the time, Yum Brands Chinese division was valued between US$8 billion to US$11 billion. The second round of bids is for approximately a 20% stake in the new company.
  • In April 2016, China Investment Corp (CIC) announced it may invest the new Chinese division of Yum Brands.
  • In 2012, Boyu Capital, China Investment Corp. (CIC), Citic Capital and China Development Bank bought a 5.6% stake in Alibaba, an e-commerce platform.
  • Founded in 2010 and headquartered in Beijing, Primavera Capital Group is private equity firm.
  • Founded in 2002 and headquartered in Beijing, CDH Investments is a private equity firm. As of early 2016, CDH Investments had invested in China Modern Dairy (HKG:1117), WH Group (HKG:0288), and China Mengniu Dairy (HKG:2319).

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