Shanghai-based Chinese warehousing developer e-Shang says that the company has entered into a financing agreement with Goldman Sachs.
Under the agreement, Goldman Sachs will provide a US$120 million pre-IPO loan to e-Shang to help the company capitalize on the growth opportunities in the logistics sector in China, according to a company announcement.
e-Shang did not disclose when it is planning to go public.
e-Shang was co-founded by Warburg Pincus and two Chinese entrepreneurs in 2011.
Warburg Pincus, having already invested in e-Shang and a major shareholder of the company, is also committing to a third round of investment to fund the company’s growth.
The latest round will bring Warburg Pincus’ total invested and committed capital to e-Shang to over US$200 million.
e-Shang currently operates one million square meters of completed and ongoing projects of warehouses in Shanghai, Beijing, Guangzhou as well as a number of second-tier cities in China.
"As China’s economy shifts to a more consumption-based model, we see great potential in the logistics sector," says Luke Wei, a managing director of Goldman Sachs.