AMZ123 learned that on December 11, Ali announced that it would inject 6$3.4 billion, which brings its total injection into Lazada this year to more than $1.8 billion.
The funding comes as Alibaba faces stiff competition with the likes of Pinduoduo and Tencent in China and continues to evaluate and adjust its strategy. In its latest earnings report, Alibaba announced that it has shelved plans to spin off its cloud intelligence division due to restrictions that have hindered the growth of its cloud intelligence division.
In its Q2 FY2024 earnings report, Alibaba's international digital commerce division announced that its revenue for Q2 FY2024 increased by 53% year-on-year, and Lazada is preparing to raise funds. At the same time, Lazada is facing competition from giants such as Shopee in Southeast Asia.
According to a recent report by venture capital firm Momentumworks, Lazada was the second-largest e-commerce platform in Southeast Asia by gross merchandise value (GMV) last year, with a GMV of $20.1 billion. At the top of the list is Shopee, with sales of $47.9 billion.
Nowadays, both companies are facing new competition, and TikTok is the most threatening competitor. TikTok CEO Shouzichew said earlier this year that it plans to invest billions of dollars in Southeast Asia, one of its fastest-growing regions.
Alibaba is said to be considering an initial public offering in the U.S. for its international digital commerce division. As major issues such as its perceived market dominance begin to be resolved, China has shown signs of loosening regulations on homegrown tech giants.
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