Alibaba denies talks to sell Lazada’s Thailand unit as it eyes continued global expansion

The Chinese e-commerce giant denied the rumours sparked by a Bangkok Post report, as it continues to grapple with an economic slowdown at home

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Staff members work at Lazada’s office in Bangkok on October 21, 2019. Photo: Xinhua

Published: 3:00pm, 20 Jun 2024Updated: 5:12pm, 20 Jun 2024

Southeast Asian online shopping giant Lazada Group has refuted a report that parent company Alibaba Group Holding is planning to sell its Thailand unit, as China’s largest e-commerce conglomerate eyes overseas expansion amid a domestic economic slowdown.

“Lazada Group is not considering any divestment of our business in Thailand and is not in discussion with any investors on this topic,” the company said in a statement. “Any rumours stating otherwise are untrue.”

The Bangkok Post on Thursday reported that Alibaba had been in talks with local conglomerates to sell its stake in the Thailand operations, citing anonymous sources.

Lazada started in Singapore in 2012 and by 2016 claimed to be the largest e-commerce firm in Southeast Asia. Alibaba, which owns the South China Morning Post, bought a controlling stake in the company that year.

Alibaba has continued to pump fresh capital into Lazada over the years, including two sizeable investments last year: US$845 million in July and US$634 million in December. Alibaba invested another US$230 million in May this year, according to Crunchbase data. It has to date spent a total of US$7.4 billion on the Southeast Asian digital retailer.

Lazada now sits under Alibaba’s International Digital Commerce Group, one of the Hangzhou-based tech giant’s six major business groups set up during an organisational overhaul in March 2023.