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

(Image credit: Image Credit: Asif Islam / Shutterstock)

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

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.