Cainiao Network Technology has completed investment in logistics platform KXTX, becoming the second-biggest shareholder of the latter. This is the first external investment launched by Cainiao Network since its establishment one year ago. Both sides confirmed the investment, but declined to reveal the details. It is reported that the investment was several hundreds of millions yuan.

Cainiao has purchased large numbers of land plots in cities of Tianjin, Shanghai, Guangzhou, Wuhan Chengdu and Jinhua for warehouse. Cainiao plans to invest overall 300 billion yuan ($48 billion) in establishing central warehouses in nine core cities and transit ones in over 20 cities, according to plan of Jack Ma.

KXTX is a supply chain and logistics platform focused on road transportation. It has logistic centers in 11 cities countrywide, including Shanghai, Guangzhou, Chengdu, Hangzhou, Nanjing, Wuhan, etc. The company claimed that more than 1,000 medium and small logistics companies have been integrated in its platform.

Under the deal, Cainiao and KXTX will open logistic parks and transit centers to each other, saving costs in establishing transit hubs in the same cities. The parcels generated from Tmall is expected to be delivered by KXTX in the future.

Logistics companies benefited from the expansion of e-commerce market. The daily parcels generated from Taobao and Tmall are over 12 million. At peak, more than 80 million parcels were generated within 13 hours on the annual promotion day of 11th November, 2013.

image credit: Cainiao & KXTX