JD Industrials, a subsidiary of JD.com that delivers industrial maintenance, repair and operations (MRO) products and services, has bagged $300 million in a Series B funding round, per a company release on Tuesday.
Abu Dhabi’s sovereign wealth fund Mubadala Investment Company and 42XFund, a $10 billion tech fund under Abu Dhabi-based artificial intelligence company G42, led the funding round. 42XFund was formed in partnership with the state-owned Abu Dhabi Growth Fund, according to a local media report in August 2022.
The round saw the participation of UK-headquartered asset management group M&G, and buyout giant BPEA EQT, while existing shareholder Sequoia Capital China also re-upped. Upon the completion of the transaction, the JD Group will remain the controlling shareholder of JD Industrials.
The firm will use the proceeds to invest in infrastructure and technology services, which will help the firm to develop more supply chain technology solutions to better serve its enterprise customers.
JD Industrials, formerly known as JD Industrial Technology Inc., operates as an e-commerce platform for industrial MRO products and services targeted at corporate customers.
Previously, the firm secured $230 million in a Series A round led by global venture capital firm GGV Capital in May 2020. The Series A round, joined by Sequoia Capital China and CPE, gave the MRO unit a post-money valuation of over $2 billion. JD MRO is the fourth JD unit to become a unicorn after JD Digits, JD Logistics, and JD Health.
The announcement comes at a time when Chinese startups and fund managers flock to tap the deep capital pool in the Middle East amid the rising trade tensions between China and the US. Last Tuesday, G42 reportedly acquired a $100 million plus stake in TikTok owner ByteDance, bringing the firm’s valuation to $220 billion, per Bloomberg.