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Alibaba invests another USD 630 million in Southeast Asia market via Lazada

Chinese giant Alibaba Holdings has invested a further USD 630 million in its Singapore-based Lazada, as it looks to boost sales in the region and remain competitive against rival TikTok.

SEE ALSO: Alibaba injects USD 845 million into Lazada

The latest investment brings Alibaba’s total injection into Lazada this year to over USD 1.8 billion and comes five months after the e-commerce firm injected USD 845 million in its Lazada arm in July.

The move looks to rival Chinese social media firm TikTok’s USD 1.5 billion investment in Indonesia-based GoTo’s e-commerce unit Tokopedia to revive its online shopping business. Three months prior to that, the video platform app had been forced to suspend retail services in Indonesia.

In 2022, the e-commerce market in Southeast Asia amounted to approximately USD 131 billion, according to Statista.

This is forecasted to increase significantly by 2025, in which the e-commerce market in Southeast Asia is expected to be worth some USD 211 billion.

Alibaba acquired Lazada in 2016 from Rocket Internet. Last year, Alibaba explored spinning off Lazada, and discussed raising at least USD 1 billion for Lazada before calling off negotiations with potential investors, due to discrepancies in the valuation of the firm.

The online marketplace is present in six markets including Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, and boasts some 60 million active users and more than one million active sellers every month.