The investment was disclosed in a filing with Singapore authorities. In total, Lazada has received $7 billion from Alibaba. The e-commerce platform Lazada operates under Alibaba's Global Digital Business, which manages Trendyol,AliExpress and Daraz.
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| Lazada is under pressure from other e-commerce platforms such as Shopee and TikTok Shop. |
Under the new business structure, Mr. Jiang Fan - CEO of Alibaba will lead the global digital business of this e-commerce site. The board members include Michael Evans, Eddie Wu Yongming and Trudy Dai Shan.
After launching in 2012, Lazada received its first investment from Alibaba in 2016 when the Chinese giant bought a controlling stake. Currently, Alibaba holds more than 80% of Lazada's shares through successive investments.
In the fourth quarter of 2022, Alibaba recorded a 2% increase in revenue and agreed to spin off its Cloud Intelligence division as well as continue to pump more money into other business segments. Moreover, the quarterly revenue from the group's international commerce segment also increased 29% year-on-year to 18.5 billion yuan as total orders on e-commerce platforms such as Lazada, AliExpress, Trendyol and Daraz increased 15% in the same period.
Alibaba said Lazada will continue to grow its customer base through customer engagement programs in most regions. The company will also offer more value-added services, which will help improve revenue growth.
Lazada is currently facing fierce competition from Amazon and Sea, Shopee’s parent company. Meanwhile, to focus on its home country after years of expansion, its domestic rival JD.com is looking to withdraw from the Southeast Asian market. JD.com’s joint ventures in Thailand and Indonesia announced that they would cease operations from March 3 and March 31, respectively. In addition, TikTok Shop is also growing strongly, making the e-commerce race in the region even more intense.
In 2016, Lazada joined forces with Alibaba, leveraging all its resources in technology research and development and logistics. From its current 160 million users, the company wants to increase to about 300 million by 2030.
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