Alibaba invests $378.5 million in its Southeast Asian subsidiary, Lazada

Southeast Asian e-commerce website Lazada has received a $378.5 million injection from the issuance of new shares to its parent company Alibaba Singapore, according to BusinessStreetAsia, which announced on Monday that it had reviewed the company’s regulatory filing. DealStreetAsia said the investment was the largest since Alibaba’s $1.3 billion investment in the company in June 2020.

Alibaba recently planned to expand Lazada to Europe to diversify its growth as competition intensified in China, according to Reuters. Alibaba already has a presence in Europe through AliExpress, which does cross-border sales from China.

Lazada, which is not listed, did not immediately respond to requests for comment on the issuance’s reported injection of new shares.

The company had a gross merchandise value (GMV) of $21 billion and 159 million users in the 12 months ending September 2021. It lags its biggest rival Shopee owned by the group. Sea, which recorded a GMV of $62.5 billion last year.

Lazada, which recently opened a new headquarters in Singapore, has a presence in six Southeast Asian countries. Shopee operates in 13 countries including Poland and Spain. Shopee was in France, but came out a month after opening there.

Alibaba acquired 51% of Lazada for $1 billion in 2016 and later increased its stake to 83% by investing an additional $1 billion. Alibaba aims to increase Lazada’s GMV to $100 billion and double its customer base to 300 million users by 2030.

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