The Insights Out has learned that the Chinese e-commerce giant Alibaba is interested in acquiring a stake in Southeast-Asian e-commerce startup Lazada Group and has made a formal announcement on Tuesday.
Alibaba announced that it would purchase new and existing shares and acquire a controlling stake in the startup. With this, it will pour nearly $1 billion into Lazada Group with new shares accounting for half of this investment. Shares held by existing shareholders, including Berlin-based tech incubator Rocket Internet AG and British grocery and general merchandise retailer Tesco among others will be purchased for another $500 million.
The move comes at the time growth has stagnated in the home country. Evidently, Alibaba has turned to the rest of the world for expansion.
Lazada was launched in 2012 and has grown rapidly to include 7000 full time employees across Southeast Asia. It has operations in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam with a sourcing center in Hong Kong to drive cross-border market activities.