Alibaba-backed firm eyes scale

Loss-making Cainiao prioritizes growth over profits; wants investors to fund expansion of its distribution network

Alibaba Group Holding Ltd's delivery affiliate will continue to prioritize growth over profits as it builds the logistics network at the heart of the Chinese e-commerce giant's global expansion.

While Cainiao Smart Logistics Network Ltd needs funds to continue its investment in its distribution network, it only wants the backing of investors who endorse its model of incurring losses to build scale, Chief Executive Officer Judy Tong told partners at a conference in Hangzhou.