Retail Giant Suning.com Raises 6 Billion Yuan for E-Commerce Spin-off
What’s new: Suning.com Co. Ltd. has set up a new unit to handle its e-commerce business, taking in 6 billion yuan ($911.6 million) in a series A funding round, which brings the value of the new online retailing arm to 25 billion yuan, according to a company statement Monday.
Founded by Shenzhen-listed Suning.com last month, the new subsidiary called Yunwang Wandian has attracted investments from state-backed capital firms including Shenzhen Capital Group Co. Ltd. and Shenzhen Luohu Guidance Fund Investment.
Shares in Suning.com jumped 2.6% on Tuesday morning to 9.38 yuan per share, but gave back most of theirs gains in the afternoon to close the day at 9.14 yuan.
More details: Suning.com said it will use the capital raised from investors to expand its market presence and increase user and transaction numbers on its online retailing platform. Suning.com controls 70% of the new company’s shares, with the remaining 30% owned by two shareholding firms opened in October.
The retailing giant has closed over 900 brick-and-mortar stores this year, accounting for almost one-quarter of the total number it had at the end of last year, as traditional retail took a hit from the pandemic.
The company’s revenue slipped 10% to 180.86 billion yuan in the third quarter, but merchandise value saw a 6.5% uptick, over two-thirds of which came from online sales.
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