Temasek joins investors in J&T Express US$2b funding round

[SINGAPORE] J&T Express raised US$2 billion from investors including Temasek Holdings in its latest funding round, according to people familiar with the matter, as the logistics company moves closer to seeking a Hong Kong initial public offering.

The Asian delivery firm's existing investors Hillhouse Capital, Boyu Capital and Sequoia Capital China joined the fundraising, the people said, asked not to be identified as the matter is private. The round, which valued J&T Express at US$20 billion, closed near the end of last year, the people said.

Along with Temasek, J&T Express attracted other new investors including the Chinese investment arm of Susquehanna International Group, and Hidden Hill Capital, the private equity platform in China of logistics-focused investment manager GLP, the people said.

The funding round comes as J&T Express weighs a first-time share sale in Hong Kong this year that could raise about US$1 billion, Bloomberg News reported in August. The company considered shifting its plans after previously mulling a listing in the US, people familiar with the matter said at the time.

The company plans to use the latest funds to support the expansion of its global delivery network and cross-border businesses, and to digitize its warehouse centers and business operation, one of the people said. A representative for J&T Express declined to comment.

Founded in 2015, J&T Express provides express services and cross-border logistics for a network that spans ten countries including China, Indonesia, Vietnam, and Singapore, its Website shows. The company expanded its express network into the United Arab Emirates and Saudi Arabia in January, according to a statement.

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The courier firm acquired Best's express delivery business in China last year in a deal with an enterprise value of about 6.8 billion yuan (US$1.1 billion). BLOOMBERG