JD.com, a Chinese e-commerce firm, recently announced that it is investing 67.5 million yuan ($10.74 million) in its venture to enter the smart home market which features inter-connected electronic devices.
In an agreement signed by JD and iFLYTEK, both firms will be launching a new information technology company. iFLYTEK is a Chinese voice technology company.
The total registered capital of the new tech firm is composed of a 55-percent contribution from iFLYTEK, which amounts to 82.5 million yuan ($13.2 million), and a 45-percent share from JD.
Known for voice technology products, iFLYTEK secures a 70-percent market share in China. Its products, like Voice Touch, are used by various Chinese messaging services such as Sina Weibo and Tencent QQ.
Meanwhile, JD, e-commerce giant Alibaba's rival, reported that its net revenues reached 115 billion yuan, a 66-percent year-on-year increase.
In 2014, the firm listed a nearly million active customer accounts.
When the news about the JD-iFLYTEK deal was disclosed, the voice tech company experienced a surge in share price, hitting the daily increase threshold of 10 percent. When the market closed, JD recorded a 7.58-percent increase.
Based on Taiwan's Topology Research Institute, China's smart home market size hit a 23.8-billion-yuan ($3.8 billion) mark last year. In a recent forecast, the market is seen to expand by 26 percent.
Before 2014 ended, Midea Group has announced its partnership with Beijing Xiaomi Technology for a smart home industry venture. Midea is the country's leading home appliance manufacturer.