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Alibaba's Rival Aims To Raise $1B From Tencent

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  • Indonesian startup J&T Express aims to raise over $1 billion from Tencent Holdings Ltd (OTC: TCEHY) and other investors at a pre-money valuation of $20 billion, the Information reports.

  • The high valuation reflects investors' faith in the express courier service in Southeast Asia and China. The business got a significant shot in the arm from the pandemic-driven online shopping growth.

  • A brutal price war is brewing between the fast-growing startup and Alibaba Group Holding Ltd's (NYSE: BABA) logistics network. J&T's significant clients include Pinduoduo Inc (NASDAQ: PDD) and Sea Ltd's Shopee.

  • Alibaba rival Tencent backs both Pinduoduo and Sea. Recently, JD.com Inc (NASDAQ: JD) also recently ramped up its logistics presence.

  • Price Action: BABA shares traded higher by 2.87% at $166.1949on the last check Tuesday.

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