Photo/Zhang Xiaoyi (NBD)

Apr. 26 (NBD) -- Chinese online marketplace JD.com (NASDAQ: JD) is to strengthen its deployment in the tourism sector which is gradually recovering from the fallout of the coronavirus outbreak.

CAISSA Touristic (000796.SZ) announced on Saturday that JD.com, through a fully-owned subsidiary, is to subscribe 450 million yuan (63.5 million U.S. dollars) worth of private placement of the tourism firm.

After the deal is closed, the subsidy of JD.com will become one of the top 10 shareholders of CAISSA Touristic with an aggregated 7.37 percent stake. The tie-up will see the two teaming up on resources, investments, branding and marketing.

It's noticed that this is not the first time for the e-commerce giant to deploy in the tourism domain. Back in June 2014, JD.com launched its tourism platform, specializing in proving medium- and high- end tourism services.

In the same year, the online retailer invested 50 million U.S. dollars in tourism company Tuniu Corp (Nasdaq: TOUR). In 2015, it ploughed an additional 350 million U.S. dollars of investments (including capital and resources) into Tuniu, making it once a formidable rival of OTA giant Trip.com (Nasdaq: TCOM). As of December 31, 2019, JD.com holds approximately 21.2 percent stake in Tuniu.

However, Tuniu's advantage was tuned down as competition grows fiercer. According to its financial reports, the travel firm has recorded losses for five consecutive quarters since Q4 2018, which drove its share prices lower.

As of the closing of April 24, the market value of Tuniu stood at 113.51 million U.S. dollars and JD.com's 21.2 percent stake was valued at around 24 million U.S. dollars, which means a 94 percent loss from the previous investments in Tuniu. 

Some unsuccessful investments in the tourism sector might have prompted JD.com to start deploying its own travel businesses, said media reports, adding that the partnership with CAISSA Touristic is likely to expand JD.com's presence in the whole tourism industry chain.

Email: gaohan@nbd.com.cn