Alibaba today announced that it will invest US$2 billion more in Lazada to speed up the Southeast Asian ecommerce company’s growth plans.
This brings its total investment in Lazada to US$4 billion. It said the move will deepen Lazada’s integration into the Alibaba ecosystem.
Along with the additional investment, Lazada’s board approved a management transition.
The company’s chairman Lucy Peng will now assume the additional role of CEO to drive Lazada’s growth strategies. Peng is one of Alibaba’s 18 founders.
Lazada founder Max Bittner, who’s been its CEO since 2012, will assume the role of senior advisor to Alibaba and assist in the transition and future international growth strategies.
The ecommerce company is operating in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Alibaba acquired control of it in 2016 in a deal worth US$1 billion, and further increased its stake to 83 percent with another US$1 billion investment in 2017.
An Alibaba spokesperson told Tech in Asia the latest investment doesn’t increase the company’s stake in Lazada.
This is a developing story. Check back for updates.
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