As early as May, Alibaba Group Holding Limited announced the split and approval by the board to initiate the listing of Cainiao Group. It is expected that the listing plan will be completed within the next 12 to 18 months. Today, there has been substantial progress in the listing of Cainiao.
Cainiao was established in 2013 and is celebrating its 10th anniversary this year. Nurtured within the Alibaba e-commerce ecosystem, Cainiao has developed deep insights into e-commerce and leading technological capabilities. It was one of the first to establish global end-to-end capabilities and has continuously innovated, pioneering multiple new tracks such as cross-border logistics, high-quality e-commerce supply chains, and digitized station networks. It maintains a leading position in each track. With the formal submission of its IPO prospectus, Cainiao is expected to become the world’s first intelligent logistics company.
According to the Kapbook, Cainiao is the world’s number one cross-border e-commerce logistics company based on the volume of parcels delivered in 2022. It ranks first in both outbound and inbound e-commerce logistics in China. In the fiscal year 2023, Cainiao processed over 1.5 billion cross-border e-commerce parcels, serving more than 100,000 merchants and brands as well as over 133 million overseas consumers. International business also contributed nearly half of Cainiao’s revenue. In fiscal year 2023, international business accounted for the highest proportion of revenue at 47.4%.
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Cross-border e-commerce logistics is also the fastest-growing market in global e-commerce logistics, with a projected compound annual growth rate of 18.7% from 2023 to 2027, accounting for 49.6% of the overall market increment during the same period.
In the most challenging cross-border e-commerce market, Cainiao can be considered a true “hidden champion”. Cainiao has proposed disruptive solutions in the cross-border e-commerce market, such as the Standard Cross-Border Express Solution (Global 10-day Delivery) and Priority Cross-Border Express Solution (Global 5-day Delivery). This has shortened the general order-to-delivery time from 30 to 60 days to 10 days between China and major countries worldwide, and it only costs as much as a cup of coffee.
In the past, Chinese merchants often encountered three major challenges in cross-border logistics services: slow delivery, poor quality, and high costs. Cainiao has solved the obstacles for Chinese goods to go global. This is a key factor that sets Cainiao apart and leads the market in the field of cross-border logistics.
Cainiao’s global network adopts a design that combines light and heavy elements. Cainiao strategically controls key nodes such as the comprehensive e-commerce logistics hub (e-Hub), warehouses, sorting centers, and last-mile delivery networks. Other capabilities are developed and operated in collaboration with partners. This model ensures both end-to-end controllable service capability for Cainiao globally and flexibility for rapid expansion in new markets, ensuring high utilization efficiency.
Furthermore, based on the 2022 revenue calculation, Cainiao is also a leading quality e-commerce logistics company in China’s domestic business sector. It has established long-term business relationships with more than half of the top 50 fast-moving consumer goods brands.
The Kapbook shows that Cainiao’s revenue reached 10.6 billion US dollars in the fiscal year 2023, with a compound annual growth rate of 21% from fiscal year 2021 to fiscal year 2023. Moreover, Cainiao’s overall profitability has gradually strengthened, with adjusted EBITDA exceeding 380 million US dollars in fiscal year 2023.
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