E-commerce firm Alibaba agreed today to invest $2bn in Singapore-based online marketplace Lazada, effectively doubling its investment in the company, in which it already holds an 83% share.
Lazada runs an e-commerce operation spanning Singapore, Indonesia, Malaysia, the Philippines, Thailand and Vietnam with more than 145,000 merchants registered selling items such as electronics, household goods, fashion, toys and appliances.
The company had raised a total of more than $730m from investors including e-commerce holding group Rocket Internet and retailers Tengelmann and Tesco when Alibaba paid $1bn for a majority stake in 2016, half going to new shares and half being spent on secondary purchases.
Alibaba returned in June 2017 to provide another $1bn, extending its share of Lazada to 83%. It has not disclosed whether the new funding was used to buy out the rest of the company’s stock.
The latest investment will be made alongside a reorganisation that will involve Lazada founder Max Bittner stepping down as chief executive. He will be replaced by company chairman Lucy Peng and will take on a senior adviser role at Alibaba, helping it grow internationally.
Bittner said: “Alibaba’s new commitment of capital and resources is good for Lazada and good for the Southeast Asia e-commerce market.”
In addition to its commitment to Lazada, Alibaba is also an investor in another Southeast Asian e-commerce platform, Indonesia-based Tokopedia, having led its last funding, a $1.1bn round in August 2017.