Alibaba spending US$1bil to raise stake in South-East Asiaâs Lazada
The move doubles Alibaba’s investment in Lazada after last year’s deal to buy a controlling stake in it for about US$1bil (RM4.29bil) and is a part of its efforts to boost its global sales. Reuters SINGAPORE: Chinese e-commerce company Alibaba Group Holding is investing an additional US$1bil (RM4.29bil) in South-East Asian online retailer Lazada Group, boosting its stake by nearly a third to 83% and amplifying its focus on the region. Alibaba’s announcement comes as its rivals such as Chinese e-commerce firm JD.com Inc are expanding operations in South-East Asia and amid media reports that Amazon is eyeing an entry into the region of 600 million people where only a fraction of total retail sales are currently conducted online. The region may be the first market where Amazon and Alibaba will go head-to-head, if the US firm confirms the plans. “It is a clear signal from (Alibaba) that, now having learned the market better, that they really believe in the opportunity of ecommerce in southeast Asia,” Lazada chief executive Maximilian Bittner told Reuters in an interview. The move doubles Alibaba’s investment in Lazada after last year’s deal to buy a controlling stake in it for about US$1bil (RM4.29bil) and is a part of its efforts to boost its global sales. Alibaba had the option to buy the remaining stakes from some Lazada investors, 12-18 months after the deal closed.
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Tags: alibaba, amazon, announcement, bittner, company, ecommerce, executive, interview, investment, jd.com, lazada, market, maximilian, online, opportunity, option, region, retailer, rm4.29bil, signal, south-east, southeast