JD.com Subsidiary JD MRO Acquires Chinese Industrial Procurement Company VIPMRO

JD.com Subsidiary JD MRO Acquires Chinese Industrial Procurement Company VIPMRO

JD MRO will also be driving its ‘Partner Store’ digital solutions plan through VIPMRO’s offline retail channel

Chinese industrial supplies procurement company VIPMRO has been acquired by JD MRO, a subsidiary of JD.com, according to an official announcement made by JD.com today.

The acquisition will help JD MRO accelerate its growth in the Maintenance, Repair and Operations (MRO) industry, the company said.

Following the acquisition, VIPMRO will become a sub-brand of JD MRO, and will give its parent company access to over 100,000 VIPMRO offline retail stores, it added.

JD MRO will also be extending digital solutions for the offline stores through its Partner Store plan, in the areas of product selection, transportation and delivery, and installation, among others.

“The acquisition of VIPMRO and the launch of Partner Store plan are only parts of JD’s investment in MRO industry,” VP at JD.com and President of JD Business, Chunzheng Song said in the company’s announcement.

“JD Business will further integrate resources in the market related with procurement and provide valuable long-chain services to enterprise clients,” he further added.

Founded in 2007 and based in Suzhou, VIPMRO has raised a total of $65.7 million in disclosed funding, with $48 million received in two tranches of its Series B financing held in October 2017 and May 2018.

JD.com has made earlier investments in VIPMRO prior to the acquisition. The Chinese retailing giant had led the VIPMRO’s Series B investment round in 2018. Participating investors included Chinese venture investment firms Yunqi Partners, Welight Capital, Puhua Capital, and Hong Kong-based private equity firm Bull Capital Partners.

Earlier this year, JD MRO announced that it had raised $230 million for a 10.7% stake in its Series A round of financing. Its Series A investors included California-headquartered GGV Capital, Sequoia Capital China, and Chinese state-owned CITIC Group’s private equity wing CITIC Private Equity.

With the funding, JD MRO’s valuation crossed the $2 billion, and the B2B MRO procurement company became JD.com’s fourth official unicorn company, joining JD Logistics, JD Health, and JD Digits.

The Asia Pacific region is the largest global market for the MRO industry, and is also the fastest growing. This is mainly due to manufacturing, which saw exponential growth in the Asian region due to a policy-level encouragement for the industry from major economies such as China and India.

As with other supply chain industries such as warehousing, efficiency needs in the MRO industry are a major driver for the market, influenced by rising digitization across the supply chain and developments in the smart factory segment.

Header image by Freepik

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

Top Must-Follow Productivity Influencers in 2023

Top Must-Follow Productivity Influencers in 2023

Productivity is a key aspect of success in today’s fast-paced world. Being productive enables individuals to balance their work and personal lives effectively while accomplishing their goals efficiently. To help you stay on track and reach your full potential, we’ve identified top influential productivity experts who provide valuable insights to maximize your efficiency in 2023.

What Can Drones Be Used For, and Do They Have a Future?

What Can Drones Be Used For, and Do They Have a Future?

In January 2023, Australian soldiers used drones to search for a missing woman. The drones helped them reach areas that might have been too challenging for a human to enter. For the past few years, the drone economy has been booming. Global investments in the industry amount to US$1.15 billion, with China leading the market.

2022 FIFA World Cup

The Most Controversial VAR Decisions at the 2022 FIFA World Cup

The footballing world has welcomed many new technological developments in recent times. Its goal is to make decision-making more accurate and provide a better experience for players and fans alike. These technologies include the video assistant referee (VAR), semi-automated offside technology (SAOT) and sensor-equipped footballs, all used extensively during the 2022 FIFA World Cup in Qatar.

Self-funding Your Startup? Follow These Expert Tips from Proven Entrepreneurs

Self-funding Your Startup? Follow These Expert Tips from Proven Entrepreneurs

Starting a new business can be an exciting and challenging endeavor, with securing funding being one of the biggest obstacles. Traditional funding options, such as venture capital and angel investing, can be time-consuming, especially for new and untested businesses. In such cases, self-funding, or “bootstrapping”, might be a viable option.

Navigating Ghost Job Postings: How to Avoid Them

Navigating Ghost Job Postings: How to Avoid Them

Job searching can be a daunting task, especially with the risk of encountering scams or fraudulent job postings. Ghost job postings, which refer to open job positions that are not actively being filled, are a common issue that jobseekers should be aware of. According to a survey by New York-based financial consultancy Clarify Capital.

Can AI Help You Flirt Better

Can AI Help You Flirt Better?

“Excuse me, but I think you dropped something: my jaw.” This is the pick-up line the famous artificial intelligence (AI) chatbot ChatGPT dished out when we asked for some viable options. Not the most original, sure, but not bad for a trained algorithm.