Alibaba to raise financing for digital commerce unit
Alibaba, the Chinese tech giant, plans to raise financing from outside investors for its Digital Commerce Group.
Why it matters: The company is undergoing a major restructuring effort that would split its business into six.
Details: The company says the funding will support the digital commerce unit’s geographic expansion, investment in new technologies, and help it expand its consumer and supplier base.
- Its international digital commerce group includes its Lazada and AliExpress online shopping platforms.
What’s happening: The company said today it plans to spin off its cloud division into a separate, publicly traded company.
- “We are taking concrete steps towards unlocking value from our businesses,” CEO Daniel Zhang said in prepared remarks.
- The company posted its financial results for the March quarter, recording a 2% increase in revenues, behind analysts’ estimates, and a jump in adjusted earnings.
Of note: Alibaba is also planning an initial public offering of its Cainiao Smart Logistics unit, for which it holds a 67% stake.
- It will also aim to IPO its new retail business, Freshippo (Hema), which it expects to close in the next six to 12 months.