According to commentators, Southeast Asia is an important aspect of Alibaba's global expansion and a thriving region that Chinese archival JD.com Inc is also targeting. The latest shakeup is the appointment of Lucy Peng as Lazada's new CEO to replace Max Bittner, who was installed by former owner Rocket Internet back in 2012. The company added an additional $1 billion investment in June 2017, which took its stake up to 83 percent, and solidified the brand's influence over Lazada.
The new investment, which follows Alibaba spending $2-billion to take control of Lazada, will help the company with technology development and customer acquisition.
Alibaba's share will increase to an unnamed figure since the last investment.More news: Osaka Comes Out on Top of Star-Making WTA Indian Wells Final
Alibaba has further stated that its association with Lazada will fulfill its business objective of becoming a huge player across the Southeast Asian eCommerce market. Peng is one of the 18 founders and a senior partner in the Alibaba Group.
"With a young population, high mobile penetration and just 3% of the region's retail sales now conducted online, we feel very confident to double down on Southeast Asia", Peng said.More news: Porn star's 'life threatened' over Trump
Alibaba operates in more than 200 countries and has more than 500 million people using its shopping apps every month, allowing Lazada to tap more of the e-commerce giant's resources. "I am excited about the future for Lazada and Lazadians and I look forward to continuing to contribute to the success of the business by helping Lucy and Alibaba's management", Bittner said.
Last year Amazon launched its two-hour delivery in Singapore, while China's JD.com has built its own logistics network in Indonesia, and in January announced an investment in Vietnamese online retailer Tiki.vn.
Launched in 2012, Lazada boasts more than 145,000 local and worldwide sellers and 3,000 brands throughout Indonesia, Malaysia, Thailand, Vietnam and the Philippines.More news: Audi to rival Tesla with upcoming electric four-door e-tron GT