According to documents with Singapore’s Accounting and Corporate Regulatory Authority, Southeast Asian e-commerce giant Lazada has received another US $378 million in capital from Alibaba.
Lazada has contributed the money in the form of fresh shares issued to Alibaba Group’s Singapore-based business.
However, this fresh round of funding comes as Lazada prepares to expand into Europe for the first time.
According to industry analysts, Lazada’s prospective European markets include areas where Alibaba’s international B2C cross-border platform, AliExpress, operates. According to third-party industry estimations, Spain and France were among AliExpress’ top five markets worldwide by active users in 2021.
The European growth might help Lazada, which marked its tenth anniversary in March, gain traction in preparation for a possible independent IPO. Based on our past research, a spun-off Lazada should fetch a greater valuation than Alibaba’s 2.1x revenue.
Meanwhile, a multiple similar to Sea’s 6.1x would unleash enormous value for Alibaba and its stockholders.
Alibaba also reported that the gross merchandise value (GMV) of its Southeast Asian e-Commerce businesses reached $21 billion in the year ending September 2021.
It also stated that its next target is to increase Lazada’s gross merchandise value (GMV) by fivefold to US $100 billion, although no timeline was given.
