Alibaba To Invest A Further $2 Billion Into Lazada
Alibaba are raising the stakes to overtake Amazon in South East Asia.
Online giants first showed their interest in growing their stronghold in South East Easia back in April 2016 with an initial $1 billion investment. This was swiftly followed up by a further $1 Billion round of funding in June of 2017, taking their stake up to 83 per cent of the business.
Well now it seems that a majority share is not enough for the Chinese owned e-tailer as they have not only invested a further $1 Billion, but replaced the existing CEO with their very own, Alibaba backed CEO - Lucy Peng. Currently serving as Lazada's chairwoman, Peng is also a founding partner of Alibaba and a Senior Partner in the Alibaba Group. Speaking of the decision to increase their stake in Lazada, she had this to say: “With a young population, high mobile penetration and just three percent of the region’s retail sales currently conducted online, we feel very confident to double down on Southeast Asia.”
When it comes to the increased investment, Alibaba said in a recent statement: “The investment underscores Alibaba’s 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,” while Lazada founder, Max Bittner who is the newly appointed Senior Advisor, added “Alibaba’s new commitment of capital and resources is good for Lazada and good for the Southeast Asia e-commerce market.”