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Alibaba to invest $2bn more in Lazada

RBR Staff Writer Published 20 March 2018

Chinese ecommerce giant Alibaba is investing $2bn more in Lazada to accelerate e-commerce development in Southeast Asia.

The investment is anticipated to strengthen Lazada’s integration into the Alibaba ecosystem.

It will allow Lazada to use Alibaba’s resources to further serve consumers and empower merchants in Southeast Asia in new ways.

The latest funding will double Alibaba's total investment in Lazada to $4bn.

In 2016, Alibaba acquired control of Lazada with an investment $1bn, and boosted its stake to 83% last year with an additional investment of $1bn.

Via its investment, Alibaba seeks to provide an expanded platform for local talent in Southeast Asia to contribute to the development of the digital economy in their home countries.

Headquartered in Singapore, Lazada was launched in 2012. It has presence across Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

Lazada helps over 145,000 local and international sellers and 3,000 brands serving the 560 million consumers in the region via its marketplace platform, supported by a range of marketing, data, and service solutions.

The company provides range of products in categories ranging from consumer electronics to household goods, toys, fashion, sports equipment and groceries.

After the investment, Lazada’s chairwoman Lucy Peng will now assume the additional role of CEO. Peng is one of the 18 founders of Alibaba and a senior partner in the Alibaba Partnership. She stated that the South East Asian region is a hot spot for growth and new opportunities.

She said: “With a young population, high mobile penetration and just three percent of the region’s retail sales currently conducted online, we feel very confident to double down on Southeast Asia.

“Lazada is well-positioned for the next phase of development and of Internet-enabled commerce in this region.”

Lazada founder Max Bittner will take on the role of senior advisor to Alibaba Group. Bittner will assist in the transition and future global growth strategy.

In August 2017, Alibaba also invested $1.1bn in Indonesia’s largest online marketplace, Tokopedia.

Image: Lazada Group's in-house logistics arm, Lazada Express (LEX). Photo: Courtesy of Lazada Group.