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Alibaba pumps US$230 million into Lazada

Alibaba pumps US$230 million into Lazada

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Chinese multinational technology company Alibaba has poured US$230 million into its Southeast Asia-focused eCommerce platform, Lazada. This is according to data from Alternative.pe, a data and insights platform for private funds. 

Last year, Alibaba poured a total of US$1.8 billion into Lazada, according to TechInAsia.

The company reportedly pumped US$353 million in April 2023, followed by US$845.4 million in July 2023, and finally another US$634 million in December 2023.

Don't miss: Alibaba cancels HK IPO plan for logistics arm Cainiao

The new funding reportedly comes as eCommerce players in the region turn to low-cost options to get ahead of the competition. 

MARKETING-INTERACTIVE has reached out to Lazada for more information.

In August last year, Lazada launched its 'choice' offering, a channel that aimed to "bring the best value products of the world to Southeast Asian consumers", putting it in competition with Temu and Shein in terms of low-cost offerings.  

Choice, according to Alibaba's March quarter 2024 and fiscal year 2024 results, contributed to the company's growth. 

"During the quarter, AliExpress continued to deliver robust year-over-year order growth, driven by Choice, which provides price competitiveness and high delivery speed to customers," said Alibaba in a statement.

In fact, Choice represented around 70% of AliExpress’ total orders in April 2024, it added. 

Lazada is not the only entity to receive funding from the Chinese giant. In March this year, Alibaba's media arm, Alibaba Digital Media and Entertainment Group (DME) pledged to pump HK$5 billion in the next five years as part of a broader plan to revitalise Hong Kong’s once-flourishing cultural scene.  

Under a new initiative titled “Hong Kong Cultural and Art Industry Revitalisation Programme”, Alibaba’s subsidiary media brand Youku, Alibaba Pictures, and other businesses in Alibaba’s DBE will allocate funding across locally produced TV dramas, movies, events, and train young creatives in the city’s cultural hub. 

The investment fund will also make Hong Kong the second base for Alibaba Pictures.

Photo courtesy Alibaba, website

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Lazada's brand sentiments plummet following mass retrenchment  
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