Alibaba to Invest $1 Billion in Lazada to Speed Asian Drive
- The Chinese company is taking its stake to 83% from 51%
- Deal extends its presence in a nascent Southeast Asia market
An employee mops the floor in a building lobby at the Alibaba Group Holding Ltd. headquarters in Hangzhou, China, on Tuesday, Oct. 13, 2015. Alibaba's bet on data technology is driving greater investment in areas including ways to protect user privacy as it battles Amazon.com Inc. for customers globally.
Photographer: Qilai Shen/BloombergAlibaba Group Holding Ltd. will invest another $1 billion to raise its stake in online mall Lazada Group SA to 83 percent, securing control of a fast-growing startup at the vanguard of its Southeast Asian expansion.
The Chinese e-commerce leader is buying out most other backers in a deal that values the Singapore-based startup at $3.15 billion, Lazada CEO Maximilian Bittner said, with management and Temasek Holdings Pte. remaining as the only other investors. Lazada backers Rocket Internet SE and Investment AB Kinnevik said Wednesday they were among the sellers. The startup’s previously disclosed backers also include British supermarket chain Tesco Plc.