Alibaba Group is to put a further $2 billion into Southeast Asian online shopping venture Lazada.
This brings the Group’s total investment in the e-commerce platform to $4 billion. In 2016, Alibaba acquired control of Lazada, injecting $1 billion into the business, and boosted its stake to 83% in 2017 with a further $1 billion. “This underscores our confidence in the future success of Lazada’s business and the growth prospect of the Southeast Asian market, a region that is a key part of Alibaba’s global growth strategy,” Alibaba said in a statement.
Lucy Peng, who currently serves as Lazada’s Chairwoman, will assume the additional role of CEO. Founder Max Bittner, who has served as CEO since 2012, will become senior advisor to Alibaba Group. “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,” says Peng. “Lazada is well-positioned for the next phase of development and of internet-enabled commerce in this region.”