Google to invest $550-million in Chinese e-commerce giant

Google to invest $550-million in Chinese e-commerce giant

Google to invest $550-million in Chinese e-commerce giant

Eyeing an expansion of its presence in fast-growing Asia, Alphabet's (GOOG) Google is investing $550 million in, the Chinese e-commerce player as part of a broader strategic alliance.

Under the partnership, products will appear on Google's shopping service, giving access to consumers outside Asia, while Google can apply the Chinese e-commerce company's supply chain and logistics expertise to its technology. This could help expand beyond its base in China and Southeast Asia and establish a meaningful presence in USA and European markets.

The move for a distribution platform like Google to back a service provider like is interesting since the company, through search and advertising, has relationships with a range of e-commerce firms including's arch rival Alibaba.

Google joins's current investors, including Chinese social media giant Tencent and US. According to Reuters, Google will receive 27.1 million Class A ordinary shares in, resulting in a less than one percent stake.

"We are excited to partner with and explore new solutions for retail ecosystems around the world to enable helpful, personalized and frictionless shopping experiences that give consumers the power to shop wherever and however they want", said Google chief business officer Philipp Schindler.

For, the Google deal shows its determination to build a set of global alliances as it seeks to counter Alibaba, which has been more focused on forging domestic retail tie-ups.

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