SHANGHAI: Chinese e-commerce giant Alibaba said on Wednesday (Jun 28) it would inject another US$1 billion into Southeast Asia's Lazada, as the cashed-up company increases its stake in the region's nascent online shopping market.
|The Singapore Lazada website is seen in this illustration photo June 20, 2017. Photo source: REUTERS/Thomas White/Illustration
The investment will raise Alibaba's holding in Lazada to 83 per cent from 51 per cent and take its total outlay on the company so far to more than US$2 billion.
"The e-commerce markets in the region are still relatively untapped and we see a very positive upward trajectory ahead of us," said Alibaba chief executive Daniel Zhang, estimating only three percent of Southeast Asia's retail sales are conducted online.
Alibaba, founded by China's richest man Jack Ma, is a dominant player in the fast-growing online commerce market as shoppers increasingly shun bricks-and-mortar stores.
Earlier this month Alibaba forecast annual revenue growth of 45-49 per cent. That followed an almost doubling in its net profit in the quarter ended Mar 31, on a 60 per cent surge in revenue.
Alibaba's Taobao platform is estimated to hold more than 90 per cent of China's consumer-to-consumer market, while its Tmall platform is believed to handle over half of business-to-consumer transactions.
But its international commerce business accounted for only 10 per cent of revenue in the last quarter.