China-based e-commerce company Alibaba Group is set to invest an additional $1bn in online retailer Lazada Group, increasing its stake to 83% from the existing 51%.
Lazada will continue to operate under the same brand following the investment, which is said to be in line with Alibaba’s strategy to globalise operations.
With this transaction, the aggregate investment made by Alibaba will be more than $2bn.
Alibaba Group CEO Daniel Zhang said: “As a market leader, Lazada has demonstrated its ability to execute and further lead the region in products and services with the best consumer experience in South-East Asia while growing a strong ecosystem that supports small businesses going online.
“The e-commerce markets in the region are still relatively untapped, and we see a very positive upward trajectory ahead of us. We will continue to put our resources to work in South-East Asia through Lazada to capture these growth opportunities.”
Alibaba first purchased a controlling stake in the company from German internet company Rocket Internet for $1bn.
The company noted that the investment and partnership have enabled the expansion of its global footprint, with presence in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Initiatives taken by Alibaba and Lazada during the past one year to advance e-commerce, included the establishment of an e-fulfilment centre in Malaysia, advancing 'Thailand 4.0' and launching Taobao Collection in Singapore and Malaysia.
Image: Taobao City, headquarters for Alibaba Group in Hangzhou. Photo: courtesy of Danielinblue via Wikipedia.