Alibaba Group Holding Ltd is actually the most popular Chinese based e-commerce giant which will actually invest an extra $1 billion in the online retail Lazada Group in Southeast Asia. It is very helpful to increase the stake of the Alibaba Group by totally 51 to 83 % percent which has been said by both the companies as the joined statement. This excellent move actually doubles the investment of the Alibaba in the firm after the deal of the last year in order to purchase the most controlling stake for about 1 billion dollar in Lazada. Lazada basically founded in the year 2012 and it is headquartered in the Singapore and also has the branches in the various other countries such as Philippines, Malaysia, Vietnam, Indonesia and Thailand. At the end of the 1 month in 31st March, 2017, Lazada Company had totally 23 millions of annual active buyers which are the annual report of the Alibaba Group Holding Ltd.
Valuation of investments:
In April 2016, this Chinese company has made an initial investment of $1 billion at the valuation of the 1.5 billion US dollars. The 2nd investment deal actually raises which valuation to the 3.15 billion US dollars which Lazada Company disclosed. This deal actually sees Alibaba Group in order to purchase the shares from the available backs including the rocket internet that is the Singapore based sovereign fund Temasek and also the management team of the Lazada are the only investors for keeping hold of the stock. This valuation is definitely an important uptick and overall it will provide a better reflection to provide greater performance and also traction which this company has already seen. It as well as reflects that Alibaba company continues to be tremendously positive about this area for doubling down on the Southeast Asia and viewing the potential.