SINGAPORE - Temasek Holdings has taken a stake in Lazada Group, the operator of a leading Southeast Asia online shopping mall.
Temasek is among a group of investors who are putting in 200 million euros. The group includes Rocket Internet, Kinnevik and Verlinvest who had invested in Lazada earlier.
Maximilian Bittner, CEO of Lazada Group, said, "This investment provides us with the strategic flexibility to further anchor our leadership position and enhance the shopping experience for our customers. We are extremely delighted to welcome Temasek as a new investor and long-term local partner and we are also very grateful for the continued confidence of our existing investors. To us, it is a clear recognition of our leading regional footprint, and an affirmation of the growth strategy and potential of our business."
He added, "The e-commerce market in Southeast Asia is still in its early days and we will continue to invest in our operations to enhance our customer experience."
Since its operational launch in 2012, Lazada has expanded rapidly with operations in six countries - Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam - as well as a sourcing centre in
Hong Kong that drives cross-border marketplace activities.
Sales on Lazada's websites and mobile applications have approximately doubled since June 2014. A key driver of the growth has been Lazada's Marketplace, a platform for third-party merchants. With Marketplace sales increasing more than 10 times since January 2014, the platform now accounts for approximately 70 per cent of Lazada's overall monthly sales.
Lazada plans to use the additional funds to expand and improve its logistics infrastructure, payment solutions and IT systems to enhance the shopping experience for its customers.