People visit a Cainiao booth during the 3rd China International Consumer Products Expo at Haikou, Hainan province, China on April 14, 2023.
Alibaba’s Logistics Affiliate Cainiao Targets International Expansion Amid IPO Preparation
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Alibaba’s Logistics Affiliate Cainiao Targets International Expansion Amid IPO Preparation
Alibaba’s logistics arm Cainiao Logistics, which is said to be the first of the tech giant’s six units to seek an initial public offering, is gearing up for an aggressive expansion abroad as its domestic market slows.
Alibaba’s Logistics Affiliate Cainiao Targets International Expansion Amid IPO Preparation
Currently valued at $20 billion, according to a person familiar with the matter, Cainiao is hoping to attract investors and boost its valuation by showing progress in growing its business abroad.
Alibaba’s Logistics Affiliate Cainiao Targets International Expansion Amid IPO Preparation
Cainiao already ships more than 4 million parcels on a daily basis from China to overseas destinations, but the majority of that comes from merchants selling via Alibaba’s own international shopping sites, such as AliExpress and Lazada.
Alibaba’s Logistics Affiliate Cainiao Targets International Expansion Amid IPO Preparation
To attract more outside customers, especially bigger Chinese brands seeking to establish a presence overseas, Cainiao has invested billions of dollars to build its own warehouses and hire delivery personnel in markets ranging from Europe to Southeast Asia. The company, whose name means rookie in Mandarin Chinese, aims to grow the volume of international parcels it handles from external clients by five times by the end of the year, Ding Hongwei, general manager of Cainiao Technology and Global Express, said in an interview with Forbes Asia.
Alibaba’s Logistics Affiliate Cainiao Targets International Expansion Amid IPO Preparation
“Starting from last year we have been working to expand revenues from outside,” he said by phone. “We view this as our next growth curve.”
Alibaba’s Logistics Affiliate Cainiao Targets International Expansion Amid IPO Preparation
Ding declined to comment on its listing plans. A Cainiao representative says the company has not yet established a clear timeline. Still, it is said to be already working with investment banks for a share sale in Hong Kong.
Ding Hongwei, general manager of Cainiao Technology and Global Express.
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