Ecommerce JD.com Got Trillions of Rupiah from Google

INDUSTRY.co.id - Jakarta - Google will invest up to US $ 550 million or Rp 7.7 trillion to China's electronics business center JD.com. It is part of the US internet giant in expanding its presence in the Asian market.

The investment plan announced Monday (6/18/2018) local time is described as one part of the partnership of both companies. Including, promotion of JD.com products on Google shopping service. This will also help JD.com expand beyond its base in China and Southeast Asia. As well as, establish a meaningful presence in the markets of the United States and Europe.

JD.com shares listed on the Nasdaq rose 2.5 percent on Monday morning after the investment announcement. Currently, its share price is worth US $ 44.68.

JD.com investors one of them is social media giant Tencent Holdings Ltd. The company is a major rival of China's e-commerce market leader, Alibaba Group Holding Ltd.

"Given Walmart also has a relationship with JD.com, I see this investment as a further tightening of the Google / Walmart alliance that builds a third power in e-commerce after Amazon and Alibaba," said Atlantic Equities analyst James Cordwell.

Google is increasing its investment in the Asian region, where the middle class is growing very rapidly while infrastructure in the retail sector is still minimal. Recently, Google bought Go-Jek shares and a source said Google is also seeking investment in Indian e-commerce, Flipkart.