The Chinese e-commerce giant Alibaba today announced a massive investment in Lazada, an online marketplace that is well established in Southeast Asia.
The transaction consists in one part of an investment of approximately 500 million USD in newly issued equity capital. Alibaba has also bought shares from existing shareholders, among others Swedish investment company Kinnevik and German Rocket Internet.
"Very Excited About Joining Forces"
Lazada, founded in 2012, currently operates e-commerce platforms in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. These six countries combined have a population of over 550 million and an estimated Internet user base of around 200 million.
- We are very excited about joining forces with Alibaba and see significant synergies that will drive great benefits to our customers in Southeast Asia. Leveraging Alibaba’s unique knowhow and technology will allow us to rapidly improve our services and provide an even more effortless shopping and selling experience, said Max Bittner, CEO of Lazada Group.
1.5 Billion Valuation
The $1 billion transaction will make Alibaba a leading e-commerce platform in Southeast Asia. The deal values Lazada at $1.5 billion.
- With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation for future growth in one of the most promising regions for e-commerce globally. This investment is consistent with our strategy of connecting brands, distributors and consumers wherever they are and support our ecosystem expansion in Southeast Asia, said Michael Evans, President of Alibaba.
In connection to the deal Alibaba has the right to purchase, and the shareholders the right to sell, their remaining stakes in Lazada at "fair market value" during the 12 to 18 month period after the closing of the transaction.
