Alibaba expands reach with $1 bn investment in Lazada

15 Jun '16

4 min read

Lazada is the only e-commerce platform that operates across the entire Southeast Asia region, making it a potential “one-stop shop” solution for global brands wanting to expand in the region, according to Alibaba.

The investment provides a boost to Alibaba's efforts to expand its businesses outside China. Alibaba's China marketplaces accounted for 86 per cent of the company's total revenue in the quarter ended December 31, with international wholesale and retail businesses contributing just 6 per cent. Alibaba Group Executive Chairman Jack Ma has said he would like to see the company's international operations ultimately to contribute up to half of total revenues.

“Globalization is a critical strategy for the growth of Alibaba Group today and well into the future,” Evans said in announcing the Lazada deal.

In addition to the $1 billion investment, Alibaba reached an agreement giving it the right to purchase the remaining holdings of certain Lazada shareholders at fair market value during the 12 to 18 month period after the transaction closes, the press release said. (SH)

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