Alibaba CEO Daniel Zhang image: Alibaba

Alibaba will be investing 4.66 billion yuan ($693.44 million) for a 49% stake in a new subsidiary that is being set up by Chinese courier company STO Express’ controlling shareholder, that’ll own a 29.9% stake in the firm.

If that seems complex, in simple terms, the controlling shareholder of Chinese courier company STO Express is setting up a new subsidiary that’ll control a 29.9% stake in the company. Alibaba is in turn paying near $700 million for a 49% stake in that subsidiary. This marks the company’s fourth significant investment in a Chinese courier company.

Alibaba Executive Chairman Jack Ma image: Alibaba

The company was recently reported to be in talks for a stake in the China operations of German mega-retailer Metro AG. Other of its notable investments include logistics startup Dianwoda, anime streaming site Bilibili, GoGoVan, digital marketer Focus Media, Suning Sports and online parenting startup Babytree.

“This investment is a step forward in our pursuit of the goal of 24-hour-delivery anywhere in China and 72 hours globally,” Alibaba said in a statement. “….We will deepen our existing collaboration with STO in technology, last-mile delivery across China and New Retail logistics,” the company said.

Alibaba has previously acquired stakes in Chinese courier companies YTO Express, ZTO Express and Best Inc.

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