Alibaba Injects $634M More into Lazada Amid Heating Up E-commerce Competition

As competition intensifies in the region's burgeoning digital commerce space, Alibaba has poured another $634 million into Lazada, its Southeast Asia e-commerce subsidiary.

This latest infusion brings Alibaba's total Lazada investments this year to over $1.8 billion.

Tiktok-Tokopedia $1.5B Deal

The added financing comes on the heels of TikTok announcing a $1.5 billion deal for a controlling stake in Indonesian market leader Tokopedia, with plans to combine forces across shopping features and reach.

The merger would give TikTok-Tokopedia a 40% share in Indonesia per past analyses.

Revenue Growth Up by 53%

While Alibaba continues adjusting its strategies amid fierce domestic competition, its international commerce segment notched 53% revenue growth last quarter.

Still, Lazada faces heated rivalry from Shopee in vying for Southeast Asia's 650+ million consumers.

Profitability Challenges

Having previously relied on heavy subsidies to lure customers, TikTok's past play in Indonesia underscores the mounting pressure for major e-commerce players to find paths to profitability while battling for market share.

The latest capital injection suggests Alibaba aims to dig in with Lazada against the ongoing onslaught.