JD.com and Central Group have formed a $500-million joint venture in e-commerce and financial technology, as China’s second biggest e-commerce company seeks to boost its presence in Southeast Asia with help from the leading Thai retail group.
Each company will contribute $250 million to the venture, the two companies said.
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The partnership will help JD.com expand its overseas business to take on Alibaba Group and Amazon in Southeast Asia, specifically in markets beyond Indonesia.
“Working with Thailand’s strongest retail conglomerate, with a massive shopping mall and department store network, gives us a huge competitive advantage as we expand further into Southeast Asia,” said JD.com CEO Richard Liu, in a statement.
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In detail, JD.com will provide technology and logistics support to the venture, while Central will lend its merchant relationships, brand recognition and customer insight collected through its loyalty programs.
Rumours of a potential deal first emerged back in August. The news follows JD.com’s stepping up of services across Southeast Asia, such as quick delivery in Singapore.