Abu Dhabi’s Mubadala co-leads JD Industrials’ $300m financing 2023

Mubadala Investment Corporation, the sovereign investment arm of Abu Dhabi, and the global investment firm 42XFund co-led a $300 million series B capital round for the Chinese industrial supply chain technology business JD Industrials.

“We are thrilled to report that our investment in JD Industrials, a prominent industrial supply chain technology and services provider in China and a subsidiary of JD Group, one of China’s largest online retailers, has been finalized,” Mubadala tweeted Wednesday.

Chinese company JD Industrials has raised $300 million, including Abu Dhabi’s Mubadala as a co-lead investor.

The acquisition was completed as part of Mubadala’s China investment initiative, the statement continued.

JD Industrials said in a statement that other investors in the round include UK-based asset management firm M&G, BPEA EQT — the Asia-focused investment platform of global private equity firm EQT — and current shareholder Sequoia China.

The money from the transaction would “primarily be invested in infrastructure and technology services, enabling JD Industrial to build new supply chain technology solutions to better serve its business clients,” according to the company.

JD Industrials, a division of JD.com, China’s largest online retailer, aims to become one of the world’s largest e-commerce platforms for industrial technologies.

It was said that “JD Industrials is at the forefront of JD Group’s broader aspirations to serve the real economy by becoming a worldwide leader in industry supply chain technology and services.”

The company’s objective is to “enhance the whole industrial supply chain by helping to reduce costs, boost efficiency, and provide greater operational flexibility,” according to the statement.

China’s JD Industrials receives $300 million in funding from Mubadala of Abu Dhabi.

After the completion of the acquisition, JD Group will continue to be the majority shareholder.

Mubadala, which is at the forefront of the UAE’s attempts to diversify its economy, oversees worldwide assets worth more than $284 billion.

As it has expanded its portfolio in recent years, it has increased its investments in health care, technology, transportation, sustainable energy, and life sciences.

Mubadala, Stone Point Capital, and other investors announced earlier this month that they would acquire a 20 percent share in US insurance broker Truist Insurance Holdings for $1.95 billion. The transaction values at $14.75 billion the sixth-largest insurance broker in the United States, a division of Truist Financial Corporation.

The Shanghai, Singapore, and Jakarta offices of the global technological growth fund 42XFund, which was established by Abu Dhabi’s artificial intelligence business G42 in collaboration with the Abu Dhabi Growth Fund (ADG), have worldwide reach. According to its website, it invests in the “intersection of profound technology and sectors of strategic relevance to construct a better future.”

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