China/Singapore, 19th March: China’s leading e-commerce company, Alibaba Group, has announced plans to invest an additional US$2 billion in the Lazada Group, an e-commerce platform operating in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Following this, Alibaba will have invested a total of US$4 billion in Lazada, including this additional US$2 billion investment. In 2016, Alibaba acquired a controlling stake in Lazada exchange for US$1 billion. Later in 2017, Alibaba paid US$1 billion to increase its stake in Lazada to 83%.
Some management changes were also announced. Lazada’s Chairman, Lucy Peng, will become its CEO and has been tasked by Alibaba to drive Lazada’s growth strategies. The current CEO, Max Bittner, who founded Lazada, will become a Senior Advisor to the Alibaba Group.
Peng stated, “With a young population, high mobile penetration and just 3% 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 of Internet-enabled commerce in this region, and we are excited about the incredible opportunities for super-charged growth.”