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Alibaba paid $2 billion for 83 percent of Lazada share

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Tinuku ~ Alibaba has invested an additional US$1 billion to increase its stake in Lazada. China's e-commerce giant Alibaba Group Holding Limited paid extra money to earn up to 83 percent of Southeast Asia's giant e-commerce share in Lazada Group. The new investment boosted Alibaba's share in Lazada from 51 percent to 83 percent.

Tinuku Alibaba paid $2 billion for 83 percent of Lazada share

Alibaba's strategic move follows reports that the strongest rival is JD.com and Amazon has entered the market in Southeast Asia. This region has 600 million population will be the fighting arena in the head to head of three giants of e-commerce.

"This is clear signal by Alibaba after learning the market better, they really believe in e-commerce opportunities in Southeast Asia," said Lazada chief executive Maximilian Bittner.

The additional investment of US$1 billion is also complete series of investments ever made by Alibaba in 2016 is US$1 billion. Thus, Alibaba's total investment to Lazada has reached US$2 billion.

Alibaba said it would bring a strategy to seize growth opportunities in Southeast Asia. Alibaba's support for Lazada also includes access to various merchants and upgraded logistics capabilities that are known to sell electronic products and clothing.

"The e-commerce market in this region is still unexplored and we see something very positive going forward," said Daniel Zhang, CEO of Alibaba, in a statement.

Lazada operates in English and local languages of six countries in Southeast Asia, especially Indonesia. However, the company suffered an operating loss. In Indonesia as the main base must compete fiercely with Tencent supported Tokopedia, and MatahariMall.

Lazada was established in Singapore in 2012 and soon operates in Indonesia, Malaysia, Philippines, Thailand and Vietnam. The company's annual report as of March 31, 2017 recorded 23 million active buyers who transact through Lazada.

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