Alibaba Reportedly Injects 5,2 Trillion Rupiah Funds into Lazada

Alibaba Group has again injected fresh funds into Lazada in the amount of $ 353 million or around 5,2 trillion Rupiah based on a VentureCap report. DailySocial.id have contacted Lazada Indonesia to confirm this news, but there has been no response.

Since its founding in 2012, Lazada Group has raised hundreds of millions of dollars in funding from various investors, including some of the biggest technology companies in the world. Lazada acquired Alibaba was valued at $1 billion in 2016. In 2017, the company secured $1,1 billion in a round of funding led by Alibaba and Temasek for a total of over $3 billion in funding raised.

Then, Lazada again pocketed fresh funds of $ 1 billion from Alibaba in 2018, bringing the Chinese company's total investment in Lazada to more than $ 4 billion. This funding will be used to support Lazada's growth and expansion across Southeast Asia, with a focus on building a logistics network and expanding its product offerings.

In 2020, Lazada raised another $1,3 billion in funding from a group of investors including Alibaba, Temasek and other institutional investors. This funding is used to support Lazada's continued growth and expansion, with a focus on building technological capabilities and expanding its customer base.

As the market matures E-commerce In Southeast Asia, Lazada needs capital to be able to compete fairly with other competitors who are increasingly popular in Southeast Asia, especially Indonesia.

Strengthen position in e-commerce

Indonesia is a big market player E-commerce with a population of over 270 million people and a rapidly growing middle class. According to Google, Temasek, and Bain & Company reports, the market E-commerce Indonesia is expected to reach $82 billion in 2025, up from $13 billion in 2015.

Lazada Group has experienced positive growth in Indonesia, one of their main markets. Since launching in Indonesia in 2012, Lazada has become a leading player in the industry E-commerce with strong penetration in urban and rural areas. One of the keys to Lazada's success in Indonesia is its ability to reach customers in rural areas.

Indonesia is a highly fragmented market, with many consumers living in remote areas with limited access to traditional stores. Lazada is noted to have been able to enter this market by offering a wide range of products and providing reliable delivery, even to the most remote areas.

Another player who also has a large customer base in Indonesia is Shopee. To date, Shopee has operated in more than 10 countries, including Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Shopee offers a similar range of products to Lazada, but with a greater emphasis on social commerce and mobile-first technology.

Competition between Lazada and Shopee is predicted to increase in line with rapid development E-commerce Southeast Asia. Both companies continue to invest in marketing, logistics and technology to stay ahead of the competition, while innovating to offer new and exciting shopping experiences for their customers.