Alibaba injects US$634 million into Lazada
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Chinese technology giant Alibaba Group Holding has invested another US$634 million in its e-commerce subsidiary Lazada amid intensifying competition.
The injection – the group’s third this year – takes its investment in Lazada to more than $1.8 billion.
Since taking the controlling stake in 2016, Alibaba has poured about $7.4 million into the Singapore-based e-commerce unit.
This latest move reflects the increasingly fierce competition from major rivals TikTok and Shopee in the Southeast Asian market.
TikTok, owned by Chinese tech group ByteDance, has announced it would acquire a 75 percent share in Tokopedia, an e-commerce unit of Indonesia’s tech firm GoTo. This will allow it to re-enter the country’s online shopping market following the ban of e-commerce transactions on social media.
Singaporean tech group Sea, which operates Shopee, has also announced plans to increase investment in its live commerce business, according to Nikkei.
Questions & Answers
Q.What is the total investment Alibaba has made in Lazada since taking a controlling stake?
What is the total investment Alibaba has made in Lazada since taking a controlling stake?
Since taking a controlling stake in 2016, Alibaba has invested approximately US$7.4 million into the Singapore-based e-commerce unit, Lazada.
Q.What prompted Alibaba's recent investment in Lazada?
What prompted Alibaba's recent investment in Lazada?
The recent investment reflects the increasingly fierce competition from major rivals TikTok and Shopee in the Southeast Asian market, intensifying the competitive market.
Q.Which company is Shopee operated by, and what are their plans for investment?
Which company is Shopee operated by, and what are their plans for investment?
Shopee is operated by Singaporean tech group Sea. They have announced plans to increase investment in their live commerce business.
Q.Which company owns TikTok, and what is its recent acquisition in the e-commerce market?
Which company owns TikTok, and what is its recent acquisition in the e-commerce market?
TikTok is owned by Chinese tech group ByteDance. It announced it would acquire a 75 percent share in Tokopedia, an e-commerce unit of Indonesia’s tech firm GoTo.
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