Alibaba Has Invested An Additional $845 Million Into Lazada, Its E-Commerce Platform in Southeast Asia

July 20, 2023
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Alibaba, the Chinese e-commerce giant, is showing strong confidence in the thriving business prospects of Southeast Asia, according to official documents from Singapore’s Accounting and Corporate Regulatory Authority (ACRA). Alibaba Reinvested US$845 Million in Lazada, a leading e-commerce platform in the region. This investment follows Alibaba’s reorganization and the creation of Ali International Digital Business Group, showcasing its dedication to Lazada’s growth.

Alibaba Reinvested in Lazada

Alibaba reinvested in Lazada

Following this significant financial boost from Alibaba, Lazada is now set to bolster its support for local merchants in Southeast Asia, aiming further to enhance the overall consumer experience in the region.

Since its establishment in 2012, Lazada has emerged as a significant player in Southeast Asian e-commerce. It holds a strong presence in six key markets: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Its pursuit of growth has been driven by a focus on both business and technological innovation.

In a series of strategic moves, Alibaba acquired a controlling stake in Lazada for US$1 billion in 2016. Over the subsequent years, it increased its holdings twice, investing an additional US$1 billion in 2017 and a further US$2 billion in 2018.

In 2022, under the leadership of CEO Jiang Fan at Ali International Digital Business Group, Alibaba continued its substantial investments in Lazada. Over the year, Alibaba injected US$1.6 billion into the e-commerce platform, with an additional US$352.9 million investment in April.

Alibaba has made multiple investments in Lazada. These investments result from the company’s challenges in the Southeast Asian market. The intense competition from Shopee, which has overtaken Lazada since 2019, is a significant factor. By reinvesting in Lazada, Alibaba aims to reverse this competitive situation and regain its market leadership in the region.

Read Also: TikTok Announces That It Will Invest Billions of Dollars in Southeast Asia

Thanks to financial backing from Alibaba, Lazada’s performance has seen a positive impact. The efforts invested have paid off, as Lazada is Indonesia’s third most visited e-commerce platform. This data comes from iPrice, an e-commerce research organization covering the period from Q4 2021 to Q2 2022.

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