Alibaba Invests $845M in Lazada, Intensifies Competition in Southeast Asia

Updated: Jan 8

Alibaba injects fresh capital into Lazada, intensifying competition in the fast-growing Southeast Asia market dominated by rivals like Shopee and TikTok Shop.

Credits: Photo by Takashi Nakano

Alibaba's latest move to strengthen its position in Southeast Asia's fiercely competitive e-commerce landscape comes with an additional investment of $845.44 million into Lazada. The funding was facilitated through Alibaba Group Holding's Singapore arm, as disclosed in a Wednesday filing with Singaporean authorities.

The region has witnessed a surge in online consumer spending, driven by formidable competitors such as Singapore-based Sea's Shopee and ByteDance-owned short video app's TikTok Shop, amplifying the competition further.

Since its integration into the Alibaba Group in 2016, Lazada, a pioneering e-commerce platform in Southeast Asia, has seen massive investments from Alibaba. The collaboration has allowed Lazada to leverage Alibaba's technological research and development expertise, as well as its logistics capabilities.

With a current user base of 160 million spread across Singapore, Indonesia, Thailand, Malaysia, and other markets, Lazada aims to reach 300 million users by 2030, seeking substantial expansion in the region's e-commerce landscape.

Alibaba injects $845.44 million into Lazada's Southeast Asia e-commerce venture.
The investment aims to reinforce Alibaba's position in the fiercely competitive region.
Shopee and TikTok Shop pose significant challenges to Lazada's growth.
Lazada collaborates with Alibaba to leverage technology and logistics resources.

Source: Nikkei Asia