Chinese e-commerce conglomerate Alibaba Group (NYSE: BABA) recently invested RMB 120 mln in Shanghai-based e-commerce Software as a Service (SaaS) provider Baison Software (832722.NEEQ), increasing its stake in the company to 26.27%. Baison Software on August 3 released a share prospectus indicating that it would issue up to 10 mln shares at RMB 12 per share to raise up to RMB 120 mln in funding. Funds will mainly be used for new product development and to supplement working capital. Alibaba is now Baison Software's largest shareholder.
Baison Software said that the investment will link Baison's enterprise management software development, marketing, implementation, and services with Alibaba's related, complementary resources.
Baison Software's 2016 operating revenue was RMB 140 mln and net profit was RMB 301,800.
Editor's Note: In May this year, Baison announced that it had sold a 10% equity stake to Alibaba Group subsidiary Alibaba (Beijing) Software for RMB 45 mln. For more information on this topic, please see Alibaba Invests RMB 45 Mln in E-commerce SaaS Provider Baison, MD 5/24/17 issue.