Alibaba to buy Lazada for $1 billion

Alibaba Group Holding LTD., in a turn of events, has agreed to buy control of  Indonesian e-commerce operator Lazada Group SA ‘for about $1 billion’ in hopes to see growth in the Southeast Asian region.

Bloomberg reports that China’s largest e-commerce operator will pay $500 million for new shares in Lazada while also purchasing stocks from existing investors.

“With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation,” said Alibaba President Michael Evans.

Rocket Internet’s Lazada is currently selling goods in six Southeast Asian markets including Philippines and with this venture, Alibaba aims to reach different consumers other than China.

{Bloomberg}