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Alibaba buys control of Lazada in $1 billion bet on SE Asia ecommerce (8)

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just few minutes ago Alibaba released the message that they have bought the control over Lazada.

Alibaba Group Holding Ltd has agreed to buy a controlling stake in Southeast Asian online retailer Lazada Group for about $1 billion, its biggest deal overseas, as the Chinese ecommerce giant seeks fertile new turf while growth slows at home.

Lazada, founded by Germany's Rocket Internet in 2012, is headquartered in Singapore and also operates in Malaysia, Indonesia, the Philippines, Thailand and Vietnam. That affords Alibaba a chance to tap the region's growth potential, but the market is also competitive and fragmented, with only a tiny fraction of total retail sales currently conducted online.

You can read more here:
http://www.reuters.com/article/us-la...-idUSKCN0X90HT
http://www.cnbc.com/2016/04/12/aliba...east-asia.html
http://www.wsj.com/articles/alibaba-...ada-1460445117

that should and will give Alibaba more power as Lazada is one of the strongest eCommerce brands in Asia.
and will definitely give Lazada a big push and awareness both in Asia and the rest of the world.

for more information about eCommerce - Alibaba and Lazada feel free to contact me or check these available eCommerce offers we have @ affiliaXe

Good Luck

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mental news i nearly dropped my coffee when i read this yesterday

lazada are a great example of how building a leading e-commerce portal is all in the distribution network

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Here is how they did it (must read)

http://thehustle.co/rocket-internet-oliver-samwer

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thanks for sharing the article.
very interesting how they operate - not necessarily agree with the 100% i don't give a fu$k method but you got to have some percentage of this attitude if you want to be the best and the biggest.

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Not necessarily a win for them, they've shut down their Uber clone and both their retail commerce stores are facing tough competition from local companies funded by bigger companies than Rocket. e.g: Government-linked telcos. Indonesia for example is considering banning them completely because they want local investors for local companies.

Indonesia has MatahariMall, Malaysia has 11Street and FashionValet etc

While $1b sounds like a lot, keep in mind that they have almost 0 profit (was reporting a loss last year?) AND mediocre growth. SEA is a very uniquely difficult, small fragmented market, unlike the US/JP/EU/CN. Every small little country has custom regulations, language etc.

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these guys have taken ripping landers to whole new level

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Yes I agree in a sense but if you read the article rocket internet wasn't seeking profits (That's the buyers problem) , they launch multiple clones (just like campaigns lots of losers and few winners) and they only need one winner , their goal is growth and to sell the company and move on to another clone , looks like they did just that .

when I have more time i will share how i did something similar back in the days , not on this level but made me some money and was fun doing it .

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Im not sure how everybody is so amazed with this. Its a 1.5 Billion pre-money valuation - hardly super amazing.

there is nearly no Increase in Valuation from 16 month back. Rocket itself just sold 9 % percent now to AliBaba, there were already at a small % before the alibaba deal - so i wouldnt consider this a major exit or anything else.

cheers

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