TikTok owner ByteDance invests in Chinese e-commerce company

The parent of TikTok, ByteDance Ltd., invested in Dubai-based iMile Delivery LLC as part of the first major fundraising by the courier company that services Chinese online vendors, according to people familiar with the matter.

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The Series A financing round, one of the largest by a female founder to date, raised $40 million and valued iMile at $350 million, according to a statement. The people said ByteDance committed around $10 million at a lower valuation, but they asked not to be named because the information isn't public.

Beijing-based ByteDance didn't want to make a statement. iMile wouldn't reveal the names of investors or the amounts they've put into the company.

Consumer habits have shifted during the coronaviruses lockdowns that kept people at home and glued to their devices. Amazon Inc. is competing for dominance with its regional rival Noon.com, even before the epidemic, e-commerce activity has already taken off in the Middle East.

They are faced with stiff competition from new entrants like JD.com and Chinese sellers that are often more affordable, such as online retailer SheIn, backed by Tiger Global Management. E-commerce vendors are increasingly using social media to target shoppers, which may explain the TikTok owner's investment in a shipping company.

ByteDance is counting on TikTok and other global products to spur growth, just as it struggles with a weaker economy and stiffer regulations at home. TikTok is quickly morphing into an online marketplace where influencers can sell products to their fans through live streams, not unlike its domestic peer Douyin. TikTok has launched a dedicated app for merchants to manage orders and refunds in Indonesia.

The fresh capital will support iMile's plans to hire more engineers in China and invest in its technology while extending services beyond e-commerce into banking and telecommunications. The shipping to consumers in the Middle East is largely handled by local player Aramex PJSC, backed by Abu Dhabi sovereign fund ADQ, and global carriers like FedEx Corp. or UPS. Dubai-based Fetchr, which also targeted Chinese e-commerce, is on the brink of being liquidated.

In 2017, Rita Huang, who worked at Alibaba Group Holding Ltd. and Huawei Technologies Co., co-founded the company.

In an interview, Huang said that factories in China are now accessible to customers from all over the world because of the technological digitization and the direct selling of products to the consumer. They can bring down costs by cutting the middlemen out. None of the Wildfires Are Getting Worse, and One Chemical Company is Reaping the Benefits.