According to information from DealStreetAsia, Southeast Asian e-commerce website Lazada has received $ 378.5 million from the issuance of new shares from its parent company, Alibaba. This information was published by DealStreetAsia on Monday when they checked the company’s records. DealstreetAsia reports that the investment is the largest ever since Alibaba invested $1.3 billion in the company in June 2020.
Alibaba recently planned to expand Lazada to Europe to diversify the source of the company’s growth as competition starts to heat up in China. Alibaba also already has a presence in Europe through AliExpress.
Lazada has not yet responded to this issue.
The company recorded $21 billion worth of merchandise and 159 million users in the 12 months ending September 2021. This is significantly lower than rival Shopee – a subsidiary of Sea Group – which recorded $62.5 billion in total merchandise value last year.
Lazada recently opened its headquarters in Singapore. They currently operate operations in 6 countries in Southeast Asia. Meanwhile, Shopee operates in 13 countries including Poland and Spain. Shopee was also present in France but they left here only 1 month after its official launch.
Alibaba bought a 51% stake in Lazada for $1 billion in 2016 and later increased the stake to 83% through another $1 billion investment. Alibaba aims to increase its total merchandise value to $100 billion and double its users to 300 million by 2030.
In February, it was reported that Alibaba Group Holding discussed raising at least $1 billion for Lazada. People familiar with the matter said the Chinese e-commerce giant had aimed to secure Lazada’s finances to become a “subversion” of the company with its headquarters in Singapore. Alibaba is also planning a potential IPO for Lazada. The source said that Alibaba had hoped to raise at least $ 1 billion but then withdrew because it could not secure its expected valuation.
China’s largest online retailer is looking for growth overseas as its domestic market cools and Beijing’s Covid Zero policy continues to dampen consumption across the world’s No. gender. In November, Alibaba cut its fiscal 2022 outlook after it reported sales that missed analysts’ estimates for the second straight quarter.
Competition is intensifying just as China grapples with the widest Covid-19 outbreak since the virus first emerged in Wuhan. Rivals like JD.com and Pinduoduo are also stepping up investments to win over Alibaba’s users.
In December, Alibaba CEO Daniel Zhang and his subordinates identified overseas business, remote cities and cloud technology as the company’s key growth drivers in recent years. next year.
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