HANGZHOU, March 11 (Xinhua) -- Chinese e-commerce powerhouse Alibaba has agreed to invest 4.66 billion yuan (about 693 million U.S. dollars) in exchange for about 14.6 percent equity stake in delivery company STO Express.

According to a statement released by STO express on Monday, its controlling shareholder Shanghai Deyin Investment Holding Co. Ltd. will set up two new subsidiaries. Alibaba will invest 4.66 billion yuan and own 49 percent in one of the new subsidiaries. That subsidiary will own 29.9 percent stake in STO Express, and by extension, Alibaba will hold 14.6 percent.

The agreement, signed on Sunday, will see Alibaba and STO express deepen their collaboration in the transformation of China's logistics industry, in areas including logistics technology, last-mile pickup and delivery capabilities and new retail business-related deliveries.

In May last year, Alibaba's delivery arm, Cainiao Network said it would set up more global logistics bases to make its logistics network smarter and more efficient, ultimately aiming to be able to deliver anywhere in the world within 72 hours. In 2017, Alibaba Group also announced an investment of 100 billion yuan over five years to build a global logistics network.