China’s Best Logistics raises $760 mln from CITIC, Alibaba and others

China’s Best Logistics Technologies Ltd said on Wednesday it has raised $ 760 million from a group of investors including CITIC Private Equity and a unit of e-commerce giant Alibaba Group Holding Ltd.

Hangzhou-based Best Logistics, which runs warehouses and distribution centers around China, plans to use the proceeds on new technology, offer new financial services and expand its international presence, the company said in an e-mailed statement.

CITIC PE led the fundraising round, with Alibaba affiliate Cainiao Smart Logistics Network Ltd also becoming a shareholder of Best Logistics, the company added. Other new investors included China Development Bank International and Fosun International, as well as existing shareholders such as Goldman Sachs and private equity firm CDH Investments.

Investors including Carlyle Group LP, Canada Pension Plan Investment Board (CPPIB) and Warburg Pincus have splashed $ 12 billion on the logistics sector in China since 2013, with more expected in coming years fueled by a need for modern warehousing because of a boom in e-commerce. (Reporting by Kevin Yao in Beijing; Writing by Elzio Barreto; Editing by Simon cameron-Moore)