Last week, Singapore Post completed its joint venture with Alibaba as the S$86.2 million (US$61.9m) investment by the Hangzhou-based e-Commerce giant in SingPost’s logistics subsidiary Quantium Solutions International (“QSI”) was completed, and regulatory approval for Alibaba’s second investment in SingPost was obtained.
With the approval, Alibaba now owns 34% in QSI, with SingPost controlling the remaining 66%.
First announced on 8 July 2015, the logistics joint venture is the culmination of deepening business ties between SingPost and Alibaba. Beginning as a customer of SingPost, Alibaba became a SingPost shareholder in 2014, and today, SingPost is a strategic logistics partner for Alibaba.
QSI will be a common platform to grow and enhance eCommerce logistics capabilities in Southeast Asia and Oceania, to better serve the region’s rapidly growing online retail markets, SingPost said in a statement.
Alibaba further increases shares in SingPost
QSI currently operates in 11 markets, providing a full suite of end-to-end eCommerce solutions that includes warehousing, fulfilment, and last mile delivery.
Singapore's postal authority also said that, following multiple delays, the two partners had received regulatory approval from Singapore's Info-communications Media Development Authority (“IMDA”) for Alibaba's shareholding in SingPost, which will increase to 14.4%, from 10.2% currently. Alibaba’s further investment of S$187.1 million into SingPost is targeted to be completed by 28 February 2017.
Nol van Fenema