Lazada gets nearly $380 million from Alibaba for Southeast Asia expansion

Lazada warehouse in Indonesia

Chinese e-commerce giant Alibaba Group is investing $378.5 million in its Southeast Asian retail division Lazada, according to a regulatory statement filed with the Singapore stock exchange on behalf on the company’s regional headquarter Lazada Singapore, DealStreet Asia reported.

The cash injection, through new shares issued, is the largest since Alibaba’s $1.3 billion investment in the firm in June 2020, the report said.

The move comes after news emerged in April that Lazada is on a strong expansion spree which seeks not only to strengthen its presence in Southeast Asia, but also in Europe where the company recently opened a logistics hub in Belgium. Alibaba already has business in Europe through its arm AliExpress, which connects small and medium businesses in China with international buyers.

$21 billion in sales volume in last fiscal year

Lazada said that it recorded a gross merchandise value of $21 billion from 159 million users in the 12 months ended in September 2021. This lags larger rival Shopee, owned by Singapore’s Internet firm Sea Group, which recorded a $62.5 billion gross merchandise value last year.

Alibaba acquired a controlling stake of 51 per cent of Lazada for $1 billion in 2016 from its German founders in the Rocket Internet group, a Berlin-based startup and venture builder. Later, Alibaba increased its stake to 83 per cent by investing another $1 billion.

Eyeing 300 million users by 2030

In an outlook, Alibaba aims to increase Lazada’s gross merchandise value to $100 billion and double the number of its users to more than 300 million by 2030.

Currently, Lazada operates in six countries in Southeast Asia, besides Singapore in Thailand, Vietnam, Malaysia, Indonesia and the Philippines. Competitor Shopee, in turn, operates in 14 countries worldwide, namely the same six countries in Southeast Asia as Lazada, as well as in Taiwan, Argentina, Brazil, Chile, Colombia, Mexico, Poland and Spain.

Thai royalists seek attention

On a side note, Lazada just happened to upset royalist political groups in Thailand by an online video advert which was perceived by some in the military-ruled country as “insulting the monarchy” through certain depictions of royal family members, a situation which seems to have offended some hardline monarchists.

The royalist groups rallied in front of the Lazada office in downtown Bangkok on May 6, demanded “accountability” from the online shopping platform for the controversial video clip uploaded to TikTok and called for a boycott of the shopping platform.

Lazada did at first not take the matter completely seriously but later apologised after the royalists said they would “declare war” on Lazada. No further confrontations have been reported.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

[caption id="attachment_38448" align="alignleft" width="300"] Lazada warehouse in Indonesia[/caption] Chinese e-commerce giant Alibaba Group is investing $378.5 million in its Southeast Asian retail division Lazada, according to a regulatory statement filed with the Singapore stock exchange on behalf on the company’s regional headquarter Lazada Singapore, DealStreet Asia reported. The cash injection, through new shares issued, is the largest since Alibaba’s $1.3 billion investment in the firm in June 2020, the report said. The move comes after news emerged in April that Lazada is on a strong expansion spree which seeks not only to strengthen its presence in Southeast Asia, but also...

Lazada warehouse in Indonesia

Chinese e-commerce giant Alibaba Group is investing $378.5 million in its Southeast Asian retail division Lazada, according to a regulatory statement filed with the Singapore stock exchange on behalf on the company’s regional headquarter Lazada Singapore, DealStreet Asia reported.

The cash injection, through new shares issued, is the largest since Alibaba’s $1.3 billion investment in the firm in June 2020, the report said.

The move comes after news emerged in April that Lazada is on a strong expansion spree which seeks not only to strengthen its presence in Southeast Asia, but also in Europe where the company recently opened a logistics hub in Belgium. Alibaba already has business in Europe through its arm AliExpress, which connects small and medium businesses in China with international buyers.

$21 billion in sales volume in last fiscal year

Lazada said that it recorded a gross merchandise value of $21 billion from 159 million users in the 12 months ended in September 2021. This lags larger rival Shopee, owned by Singapore’s Internet firm Sea Group, which recorded a $62.5 billion gross merchandise value last year.

Alibaba acquired a controlling stake of 51 per cent of Lazada for $1 billion in 2016 from its German founders in the Rocket Internet group, a Berlin-based startup and venture builder. Later, Alibaba increased its stake to 83 per cent by investing another $1 billion.

Eyeing 300 million users by 2030

In an outlook, Alibaba aims to increase Lazada’s gross merchandise value to $100 billion and double the number of its users to more than 300 million by 2030.

Currently, Lazada operates in six countries in Southeast Asia, besides Singapore in Thailand, Vietnam, Malaysia, Indonesia and the Philippines. Competitor Shopee, in turn, operates in 14 countries worldwide, namely the same six countries in Southeast Asia as Lazada, as well as in Taiwan, Argentina, Brazil, Chile, Colombia, Mexico, Poland and Spain.

Thai royalists seek attention

On a side note, Lazada just happened to upset royalist political groups in Thailand by an online video advert which was perceived by some in the military-ruled country as “insulting the monarchy” through certain depictions of royal family members, a situation which seems to have offended some hardline monarchists.

The royalist groups rallied in front of the Lazada office in downtown Bangkok on May 6, demanded “accountability” from the online shopping platform for the controversial video clip uploaded to TikTok and called for a boycott of the shopping platform.

Lazada did at first not take the matter completely seriously but later apologised after the royalists said they would “declare war” on Lazada. No further confrontations have been reported.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

NO COMMENTS

Leave a Reply