The e-commerce firm has joined Sequoia Capital China and the state-owned China Reform Holdings for a late-stage fund with a $5.8bn target.

China-based e-commerce firm is joining a range of partners to raise up to RMB40bn ($5.81bn) for a venture capital fund called Starquest Capital, Reuters reported this week citing undisclosed sources.

Starquest, which is also known as Xingjie Capital, will be run by private equity firm China Reform Holdings, which already oversees the $30bn Chinese state-owned Capital Venture Investment Fund.

VC firm Sequoia Capital China is also a limited partner in the fund. Its founder and managing partner Neil Shen has taken the chairman position at Starquest but does not participate in its day-to-day operations, according to the sources.

The renminbi-denominated fund will target late-stage investments in technology companies and has so far secured 25% of its target, raising capital from domestic backers according to a source. It is in discussions with other prospective investors for the rest. and Sequoia China have already worked together on investments in companies including, the online food delivery service set to be acquired for an enterprise value of $9.5bn, and publicly-listed online travel agency Tuniu.

Other portfolio companies include Indonesia-based travel services marketplace Traveloka, grocery delivery service Dada-JD Daojia, electronic goods recycler Aihuishou, on-demand ride provider Go-Jek and e-commerce platforms VIPshop and Farfetch.