MICROCAPITAL BRIEF: JD.com Crowdfunding to Expand Grameen China’s Microfinance Services

JD.com Incorporated, a direct sales e-commerce company in China with annual sales totalling RMB 29 billion (USD 11 billion) [1], recently entered into a collaboration with Grameen China, which operates under Grameen Trust, the nonprofit arm of Bangladesh’s Grameen Bank. [2]

The partnership will engage JD.com’s crowdfunding platform to raise money to fund Grameen’s ground operations in the country. Individual donors can contribute amounts ranging from RMB 2 (USD 0.32) to RMB 26,600 (USD 4,300). [3]

Richard Liu, the Founder and CEO of JD.com, said “JD.com is extremely proud to provide a platform for Grameen Trust, the global leader in microfinance, and Muhammad Yunus to expand their groundbreaking work helping to alleviate poverty in China by empowering rural entrepreneurs. In line with our vision to give back to the communities that have made us successful, we look forward to drawing on the expertise of Grameen Trust to strengthen JD.com‘s microfinance and crowdfunding efforts to more effectively empower people living in rural areas of China.” [2]

Grameen Trust started operations in China in 2009, when Alibaba Group, another Chinese e-commerce company, donated USD 5 million to help launch the initiative in the province of Sichuan and the autonomous region of Inner Mongolia. [4] The first official Grameen microfinance institution in the country opened in December 2014 in Xuzhou, Jiangsu Province, with a special focus on empowering women living in rural China. [3]

JD Crowdfunding has collected approximately RMB 100 million (USD 16.1 million) for various projects since its launch in July 2014. JD also launched its own microfinance project, the JD Hometown Delivery Program, to provide small loans to couriers to establish and operate JD.com delivery stations in their hometowns. [3]

By Julia Marín, Research Associate

About JD.com, Inc.

JD.com, Inc. is an online direct sales company in China. As of December 2014, it had a Gross Merchandise Volume totalling RMB 29 billion (USD 11 billion) and revenues came in at USD 4.7 billion. JD.com operates in 39 cities across China, and it states it has the largest fulfilment infrastructure of any e-commerce company in China.

About Grameen China

Grameen China is the China-based entity of Grameen Trust, the non-profit arm of Grameen Bank network implementing and managing microfinance programmes using Grameen Bank’s operational and philosophical model. It was founded in 2009 by Nobel Peace Prize recipient Muhammad Yunus to provide microloans, financial education and support network to women who live in poverty in rural China to build small businesses. The initiative started with a USD 5 million donation from Alibaba Group. The first official microfinance institution opened in December 2014 in Xuzhou, Jiangsu Province, with a special focus on empowering women living in rural China, by encouraging them to build small businesses through Grameen’s microloans.

Sources and Additional Resources:

[1] Jd.com, Corporate Profile

[2] Jd.com Press Releases, Grameen China and JD.com Launch Crowdfunding Microfinance Project

[3] 4-traders, JD: Crowdfunding project with a difference

[4] The Daily Star, Internet giant joins hands with Grameen China

MicroCapital, September 28, 2009, Grameen Trust of Bangladesh Partners with Alibaba Group to Create Grameen China, With Initial Focus on Bringing Microfinance to Sichuan Province

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