The two companies announced the transaction and a total investment by Alibaba of approximately 1 billion US dollars. The transaction is expected to help brands and distributors around the world already doing business on Alibaba’s platform, as well as local merchants, to access the Southeast Asian consumer market.

Lazada currently operates eCommerce platforms in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. These six countries combined have a population of approximately 560 million people, with an estimated total of 200 million Internet users. Both Lazada and Alibaba, believe that Southeast Asia is expected to offer tremendous growth potential to both companies as internet penetration continues to rise (the region’s total retail sales conducted online shouldn’t be above the 3% threshold). 

“Globalization is a critical strategy for the growth of Alibaba Group today and well into the future,” stated Michael Evans, President of Alibaba, adding: “With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation for future growth in one of the most promising regions for eCommerce globally. This investment is consistent with our strategy of connecting brands, distributors and consumers wherever they are and support our ecosystem expansion in Southeast Asia to better serve our customers.”

Founded in 2012, Lazada is the one-stop eCommerce gateway for local and international brands and distributors to consumers in six distinct Southeast Asian markets: Indonesia, Malaysia, the Philippines, Singapore Thailand and Vietnam.