Alibaba’s eCommerce competitor JD (JingDong) has announced that it will invest $171 million in Chinese ERP software firm Kingdee, for about 10% of the shares. Both firms have entered into a strategic partnership and the transaction is expected to be closed in second quarter of 2015.
JD wants to further explore its eCommerce and logistics IT solutions. Hence, Kingdee’s integrated ERP solution will be integrated into the enterprise cloud platform migration program to better meet the needs of the growing Chinese market enterprise-class solutions.
Founded in 1993, Kingdee International Software Group Co. makes enterprise resource planning software to manage various aspects of a business like inventory, manufacturing, logistics, expenses and sales. More than 4 million businesses use its services worldwide and it claims to have over 50 million subscribers.
Earlier this year, JD had launched an initiative to bring imported food items to its tens of millions of Chinese customers, to compete against Alibaba which has grown its selection of imported goods. It has also invested in vacation and tourism booking site, Tuniu and U.S. based wearable startup, Misfit among others to grow its eCommerce portfolio even stronger.