Google invests $550m into China's biggest online store

null

Google is investing millions into Chinese e-commerce platform JD.com as it looks to grow its retail footprint even further.

The result of the trade is a joint effort to build retail infrastructure with better personalization and faster service in markets like Southeast Asia.

According to CNBC, Google will be sending $550 million to JD.com which is, according to the news outlet, China’s second largest e-commerce player.

JD.com, on the other hand, will issue 27 million Class A ordinary shares, at an issue price of $20.29. It will also offer items for sale in places like the US and Europe, through Google Shopping.

“This partnership with Google opens up a broad range of possibilities to offer a superior retail experience to consumers throughout the world,” said Jianwen Liao, JD.com’s chief strategy officer, in a statement to Reuters.

Reuters claims Asia is an important marketing for both US and Chinese internet giants, as a growing middle class presents a huge opportunity in a country with poor retail infrastructure.

Google recently took a stake in Go-Jek, an Indonesian ride-hailing company, and it’s allegedly also looking into Flipkart, the Indian e-commerce stars-in-the-making. Google is quiet on the Flipkart front though, not commenting on the issue.

Image Credit: Asif Islam / Shutterstock