China’s leading e-commerce giant Alibaba Group expands in the Southeast Asian Region with its $1 billion Lazada deal after the company founded by Jack Ma has agreed to buy control of the Indonesian e-commerce operator, Lazada Group SA, in hopes to see growth in the Southeast Asian region.
In a news report posted by Bloomberg, the China’s largest e-commerce operator, Lazada, will pay $500 million for new shares in Lazada while also purchasing stocks from existing investors.
Alibaba President Michael Evans was quoted as saying in an interview with Bloomberg that “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,” said Alibaba President Michael Evans.
Lazada is considered as the largest e-commerce site in the Southeast Asian Region, it was owned and operated by Rocket Internet. The company sells goods and dominated the Southeast Asian markets which includes the Philippines. With Alibaba’s business venture on Lazada, the company aims to reach different consumers other than China.
Aside from the Philippines, Lazada also dominates the e-commerce markets in Indonesia, Singapore, Malaysia, Thailand and Vietnam. The Philippine company PLDT is one of investor of Rocket Internet, the German company that operates Lazada.
