20-7-2023 (SINGAPORE) In a bid to fortify its online retail business in Southeast Asia amid fierce competition from rivals like Sea Ltd and Amazon.com Inc., Alibaba Group Holding Ltd has invested a significant US$845 million into Lazada. The capital injection was revealed in a regulatory filing in Singapore on Wednesday, marking a continuation of Alibaba’s financial support for the business since gaining control over it in 2016. Both Alibaba and Lazada representatives declined to comment on the matter.
Lazada forms part of Alibaba’s international online shopping unit, which the Chinese tech giant is considering taking public in the United States. As part of its growth strategy, Alibaba is dividing into six segments, including e-commerce, logistics, and cloud services.
Alibaba had previously explored the possibility of spinning off Lazada, a prominent international brand acquired in stages from Rocket Internet SE. The platform competes with Amazon and Sea’s Shopee in various Southeast Asian markets, including Thailand, Malaysia, and Singapore.
In 2022, Alibaba engaged in discussions to raise at least $1 billion for Lazada, intending to prepare for a spinoff. However, negotiations with potential investors broke down over valuation concerns, leading Alibaba to suspend the fundraising efforts and instead inject additional funds into the company.
