Lazada Group, a Southeast Asia-based e-commerce platform, raised an additional USD$2 billion from Alibaba Group Holding Limited (NYSE: BABA).
Including this new capital for expansion, Alibaba will have invested a total of USD4 billion in Lazada. The Chinese e-commerce giant acquired control of Lazada in 2016 with an investment of US$1 billion and further increased its stake to 83% with another US$1 billion investment in 2017.
The company intends to use the funds accelerate growth plans in Southeast Asia deepening its integration into the Alibaba ecosystem.
Launched in 2012, Lazada is an online shopping and selling destination in Southeast Asia – present in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
The investment is expected to deepen Lazada’s integration into the Alibaba ecosystem, which will enable Lazada to tap into Alibaba’s resources to further serve consumers and empower merchants in Southeast Asia in innovative ways.
Lucy Peng, who currently serves as Lazada’s Chairman, will assume the additional role of chief executive officer to
drive Lazada’s growth strategies.
Ms. Peng is one of Alibaba’s 18 founders and a senior partner in the Alibaba Partnership. Lazada founder Max Bittner, who had been its chief executive officer since 2012, will assume the role of senior advisor to Alibaba Group and assist in the transition and future international growth strategies.