E-commerce giant Alibaba Group Holding has invested an additional US$845 million in its Southeast Asia unit Lazada amid the fierce competition in the region, according to Bloomberg.
The capital injection brings the group’s total investment in Lazada to more than $6 billion since Alibaba took the controlling stake in 2016.
In March, Alibaba announced its biggest restructuring in its history which sees it splits into six units – Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group, and Digital Media and Entertainment Group.
Lazada is part of Alibaba’s Global Digital Commerce Group, alongside AliExpress, Trendyol, and Daraz.
McKinsey & Company projected the Southeast Asian e-commerce market to triple at a compound growth rate of 22 per cent and will reach around $230 billion in gross merchandise volume.
Last month, Joseph C Tsai and Eddie Yongming Wu were named as Alibaba’s chairman and CEO, respectively, marking the group’s most significant organisational changes.
