Alibaba Group Holding Limited announced on Monday (March 19) that it will invest an additional $2 billion in Southeast Asian e-commerce company Lazada Group to speed up its growth plans in the region.
A joint statement from Alibaba Group and Lazada Group said that with the latest capital, Alibaba will have invested a total of $4 billion in Lazada, which operates in Indonesia, Malaysia, the Philippines and Singapore.
“The investment is expected to deepen Lazada’s integration into the Alibaba ecosystem, which will enable Lazada to tape into Alibaba’s resources to further serve consumers and empower merchants in Southeast Asia in innovative ways,” said the statement.
It was also announced that Lazada’s current chairman Ms Lucy Peng will now assume the additional role of chief executive to drive the company’s growth strategies.
Ms Peng is one of Alibaba’s 18 founders and is a senior partner in Alibaba.
She takes over the reins from Lazada founder Mr Max Bittner, who has been its chief executive since 2012. Mr Bittner will now assume the role of senior adviser to the Alibaba Group and assist in the transition and future international growth strategies.