(Yicai Global) Aug. 12 -- China’s No. 2 online retailer JD.Com has made its first ever investment in a convenience store chain.

JD has become Xiamen Jianfu Chain Management’s second-largest shareholder, the Beijing-based e-commerce giant said in a statement yesterday. The deal will enhance last-mile retail services, boost online consumption and lead to new retail models such as community group buying and online-to-offline home delivery, it added.

Founded in 2006, Jianfu mainly operates the convenience chain store brand Fook in China’s southeastern Fujian province and has over 1,700 stores in total.

Jingdong Bangneng Investment Management, in which JD founder Richard Liu owns 45 percent, paid CNY31.3 million (USD4.5 million) for 20 percent of Jianfu, according to an Aug. 7 company update on corporate information website Tianyancha. Sequoia Capital, which became an investor in 2008, also owns 20 percent.

It is the latest in a string of tie-ups for JD since last year. The firm is already working with Jiangsu Five Star Appliance, Gome Retail, and D. Phone in so-called 3C -- computer, communications and consumer electronics -- and home appliance sectors.

JD is also collaborating with one million offline stores and more than half of the top 100 supermarket chains in the country. Its business covers around 200 cities and has created more than 20,000 ‘one-hour living circles’ in more than 160 cities.

Editor: Peter Thomas